Donald Mango, director of research ...

Donald Mango, director of research and disentanglement at GE's Employers Reinsurance Corp., has make knowned a new way to open reinsurance capital and to price reinsurance. In his prize-winning paper, Capital Consumption: An Alternative Methodology for Pricing Reinsurance, Mango says he is challenging "many fundamental conceptual underpinnings of reinsurance pricing."

Although his paper has won three awards, including the 2004 Charles A. Hachemeister Prize from the Casualty Actuarial Society, his universal is not part of widespread industry practice.

For decades, reinsurers have been taking a risk-based, capital allocation approach in pricing their production But Mango's method eliminates the ne