Loss Reserving 201 It's More than Numbers
|
|
- Lindsay Riley
- 5 years ago
- Views:
Transcription
1 Loss Reserving 201 It's More than Numbers Derek W. Freihaut September 17, 2015 Agenda Background/Loss Reserving 101 Key Considerations Claims Handling Reinsurance Underwriting Rates External Influences Other Key Information How Actuaries Handle 1 1
2 Background/Loss Reserving 101 INCURRED LOSS TRIANGLE Accident Months of Maturity Year Background/Loss Reserving 101 AGE TO AGE FACTORS Accident Year Ultimate Average Selected Cumulative LDF % of Ultimate 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 95.0% 3 2
3 Background/Loss Reserving 101 Incurred Accident Expected Incurred Percent of Expected Loss Dev B F Year Premium Loss Ratio Losses Ultimate Losses Method Method (1) (2) (3) (4) (5) (6) (7) (8) % % % % % % % % % % % % % % % % % % % % Total 2, ,000 1,000 1,000 Col (6) = Col (2) x Col (3) Col (7) = Col (4) / Col (5) Col (8) = Col (4) + Col (6) x { 1 Col (5) } 4 Claims Handling Procedures Change in procedures How initial case reserves are set up Relative adequacy of case reserves Emphasis on speed of closing claims Desire to fight claims Staffing, number of claims per adjuster Different Third Party Administrator (TPA) 5 3
4 Claims Handling Procedures Change in reporting of claims Changes in how the accident date or report date is assigned Changes in the process of how incidents are labeled claims Underlying claims trends Changes in industry wide trends for claim frequency or severity Changes in trends specific to a coverage or region (FL PIP, CA WC) 6 Claims Handling Procedures Example Incurred Accident Expected Incurred Percent of Expected Loss Dev B F Year Premium Loss Ratio Losses Ultimate Losses Method Method (1) (2) (3) (4) (5) (6) (7) (8) % % % % % % % % % % % % % % % % % % % % Total 2, ,000 1,450 1,
5 Berquist Sherman Method Changes in case reserve adequacy distort methods based on reported incurred losses Methods based on paid losses ignore case reserves Berquist Sherman adjusts average case reserves to remove distortions Thus, valuable information in case reserves not lost 8 Reinsurance Changes in program structure Excess of loss versus quota share Change in retention level Commutations Changes in historical retentions Change in reinsurance premiums Impact on large claims or potential exposure above reinsurance layers Handling of expenses 9 5
6 Reinsurance Specific contract details Quota share percentage Retention Risk limiting features Loss ratio caps Loss corridors Swing rated premiums or commissions Risk transfer concerns Reinsurer ability to pay claims 10 1,200,000 Cumulative Gross Reported Loss for Claim # , , , , , , , , Months of Maturity 11 6
7 1,200,000 Cumulative Gross Reported Loss for Claim #123 Claim Entered Litigation 800, , , , , , , , Months of Maturity 12 1,200,000 Cumulative Gross Reported Loss for Claim #123 Claim Entered Litigation Claim Settled 800, , , , , , , , Months of Maturity 13 7
8 1,200,000 Cumulative Gross Reported Loss for Claim #123 Claim Entered Litigation Claim Settled 800, , , , , , , , , Months of Maturity 14 1,200,000 Cumulative Gross Reported Loss for Claim #123 Claim Entered Litigation Claim Settled 800, , , , , , , , , , Months of Maturity 15 8
9 AGE TO AGE FACTORS Losses Unlimited Ltd to $500K Ltd to $250K As retentions increase, development patterns can project more future development and be more volatile Expected loss costs increase as retentions increase 16 Incurred Accident Expected Incurred Percent of Expected Loss Dev B F Year Exposure Loss Cost Losses Ultimate Losses Method Method (1) (2) (3) (4) (5) (6) (7) (8) % % % % % % % % % % Total 2, ,120 1,000 1,
10 Common example Net analysis Retention changes over program history How to limit losses in development triangles? 18 Most accurate separate triangles for each retention Most conservative use highest historical retention Blended use historical retentions by period Most responsive use current retention Recent periods expected to experience most development Availability may be limited historical data Augment with benchmarks Approach should be documented Note: Currently valued loss runs should be available Limit losses to actual historical retentions by period Apply selected patterns 19 10
11 Rates and Underwriting Rates Rate level increases/decreases Changes in schedule rating Concern with adverse selection Underwriting Changes in what s acceptable to write Change in focus on profit or growth New markets/rates Changes in mix of business Geographical mix Limits or deductibles written 20 Rates Example Incurred Accident Expected Incurred Percent of Expected Loss Dev B F Year Premium Loss Ratio Losses Ultimate Losses Method Method (1) (2) (3) (4) (5) (6) (7) (8) % % % % % % % % % % % % % % % % % % % % Total 2, ,175 1,000 1,153 Col (6) = Col (2) x Col (3) Col (7) = Col (4) / Col (5) Col (8) = Col (4) + Col (6) x { 1 Col (5) } 21 11
12 Acquisition Example New block of business acquired Segmentation of current analysis (e.g. new state added to a bystate analysis) Difference in historical patterns Differences systematic or not Relative size Differences in claims handling and underwriting Persistence of differences after acquisition Distinct from organic growth (one time vs gradual shift) 22 Growth Example Growing book of business Compare long term & short term averages of age to age factors Be careful about overreacting Volume weighted average Shrinking book of business Recent age to age factors may show different trend, more volatility Volume weighted average Stability vs responsiveness Growth/shrinkage in a certain subdivision 23 12
13 External Influences External Influences Law changes FL PIP FL sinkhole SCHIP ACA Tort reforms Inflation or other economic factors New competitors New claims sources FL public adjusters 24 Other Key Information Items DDR Death, Disability, and Retirement Unearned premium and unearned premium reserve required Extra Contractual Obligations (ECO) claims Need to understand how they are included in the data and reserved for Large claims/specific claim detail Subrogation and salvage Need to understand how they are included in the data Treatment of Expenses ALAE/ULAE vs DCC/A&O 25 13
14 How Actuaries Handle Trust But Verify Verification Loss data Claim count and average severity triangles Diagnostics Comparison exhibits Company expectations Time Tools Alternative methods Berquist Sherman Judgment Non traditional methods Wait Documentation 26 Questions 27 14
15 Thank you for your time and attention Derek Freihaut Commitment Beyond Numbers 28 15
Basic Reserving: Estimating the Liability for Unpaid Claims
Basic Reserving: Estimating the Liability for Unpaid Claims September 15, 2014 Derek Freihaut, FCAS, MAAA John Wade, ACAS, MAAA Pinnacle Actuarial Resources, Inc. Loss Reserve What is a loss reserve? Amount
More information2011 CLRS - MPLI Reserving 101 9/15/2011
Medical Professional Liability Reserving 101 Common Reserving Techniques and Considerations 2011 Casualty Loss Reserve Seminar September 15, 2011 Kevin M. Dyke, FCAS, MAAA Michigan Office of Financial
More informationTHE INSTITUTE OF ACTUARIES OF AUSTRALIA A.B.N
THE INSTITUTE OF ACTUARIES OF AUSTRALIA A.B.N. 69 000 423 656 PROFESSIONAL STANDARD 300 ACTUARIAL REPORTS AND ADVICE ON GENERAL INSURANCE TECHNICAL LIABILITIES A. INTRODUCTION Application 1. This standard
More informationGI IRR Model Solutions Spring 2015
GI IRR Model Solutions Spring 2015 1. Learning Objectives: 1. The candidate will understand the key considerations for general insurance actuarial analysis. Learning Outcomes: (1l) Adjust historical earned
More informationMEMORANDUM. Steve Alpert, President, American Academy of Actuaries (Sent via to Mary Downs, Executive Director,
MEMORANDUM TO: Steve Alpert, President, American Academy of Actuaries (Sent via e-mail to Mary Downs, Executive Director, downs@actuary.org) Brian Z. Brown, President, Casualty Actuarial Society (Sent
More informationCalifornia Joint Powers Insurance Authority
An Actuarial Analysis of the Self-Insurance Program as of June 30, 2018 October 26, 2018 Michael L. DeMattei, FCAS, MAAA Jonathan B. Winn, FCAS, MAAA Table of Contents INTRODUCTION... 1 Purpose of Report...
More informationSCHEDULE P: MEMORIZE ME!!!
SCHEDULE P: MEMORIZE ME!!! NOTE: This skips all the prior years row calculation stuff, since it is covered pretty well by TIA (and I m sure any other manual). What are the cross-checks performed by the
More informationGIIRR Model Solutions Fall 2015
GIIRR Model Solutions Fall 2015 1. Learning Objectives: 1. The candidate will understand the key considerations for general insurance actuarial analysis. Learning Outcomes: (1k) Estimate written, earned
More informationSolutions to the Fall 2013 CAS Exam 5
Solutions to the Fall 2013 CAS Exam 5 (Only those questions on Basic Ratemaking) Revised January 10, 2014 to correct an error in solution 11.a. Revised January 20, 2014 to correct an error in solution
More informationExam-Style Questions Relevant to the New Casualty Actuarial Society Exam 5B G. Stolyarov II, ARe, AIS Spring 2011
Exam-Style Questions Relevant to the New CAS Exam 5B - G. Stolyarov II 1 Exam-Style Questions Relevant to the New Casualty Actuarial Society Exam 5B G. Stolyarov II, ARe, AIS Spring 2011 Published under
More informationSYLLABUS OF BASIC EDUCATION 2018 Basic Techniques for Ratemaking and Estimating Claim Liabilities Exam 5
The syllabus for this four-hour exam is defined in the form of learning objectives, knowledge statements, and readings. Exam 5 is administered as a technology-based examination. set forth, usually in broad
More informationStructured Tools to Help Organize One s Thinking When Performing or Reviewing a Reserve Analysis
Structured Tools to Help Organize One s Thinking When Performing or Reviewing a Reserve Analysis Jennifer Cheslawski Balester Deloitte Consulting LLP September 17, 2013 Gerry Kirschner AIG Agenda Learning
More informationSchedule P Schedule P- Summary. Schedule P- Part 1: Current Valuation. Description Org By Net/Gross Data Fields direct & Current
Schedule P- Summary Part 1 Part 2 Part 3 Part 4 Part5 Part 6 Part 7 Description Org By Net/Gross Data Fields Current premiums: CY Valuation loss & exp: AY and ceded Incurred Losses Paid Losses Bulk Reserves
More informationCVS CAREMARK INDEMNITY LTD. NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2017 AND 2016 (expressed in United States dollars) 1. Operations CVS Carema
NOTES TO THE FINANCIAL STATEMENTS 1. Operations CVS Caremark Indemnity Ltd. ("The Company"), formerly known as Twinsurance Limited, was incorporated in Bermuda on March 27, 1980, and is a wholly owned
More informationDRAFT 2011 Exam 5 Basic Ratemaking and Reserving
2011 Exam 5 Basic Ratemaking and Reserving The CAS is providing this advanced copy of the draft syllabus for this exam so that candidates and educators will have a sense of the learning objectives and
More informationA GUIDE TO UNDERSTANDING, COMMUNICATING, AND INFLUENCING ACTUARIAL RESULTS
A GUIDE TO UNDERSTANDING, COMMUNICATING, AND INFLUENCING ACTUARIAL RESULTS FEBRUARY 9, 2017 Jennifer Price, FCAS, MAAA Amanda Marsh, FCAS, MAAA 2017 Atlanta RIMS Educational Conference Introduction What
More informationRevised Educational Note. Premium Liabilities. Committee on Property and Casualty Insurance Financial Reporting. March 2015.
Revised Educational Note Premium Liabilities Committee on Property and Casualty Insurance Financial Reporting March 2015 Document 215017 Ce document est disponible en français 2015 Canadian Institute of
More informationSOCIETY OF ACTUARIES Introduction to Ratemaking & Reserving Exam GIIRR MORNING SESSION. Date: Wednesday, April 25, 2018 Time: 8:30 a.m. 11:45 a.m.
SOCIETY OF ACTUARIES Exam GIIRR MORNING SESSION Date: Wednesday, April 25, 2018 Time: 8:30 a.m. 11:45 a.m. INSTRUCTIONS TO CANDIDATES General Instructions 1. This examination has a total of 100 points.
More informationRisk Transfer Accounting. Casualty Loss Reserve Seminar
Risk Transfer Accounting Casualty Loss Reserve Seminar Reinsurance Accounting Guidance GAAP Statutory FASB Statement No. 113, Accounting and Reporting for Reinsurance of Short-Duration and Long-Duration
More informationExploring the Fundamental Insurance Equation
Exploring the Fundamental Insurance Equation PATRICK STAPLETON, FCAS PRICING MANAGER ALLSTATE INSURANCE COMPANY PSTAP@ALLSTATE.COM CAS RPM March 2016 CAS Antitrust Notice The Casualty Actuarial Society
More information2015 Statutory Combined Annual Statement Schedule P Disclosure
2015 Statutory Combined Annual Statement Schedule P Disclosure This disclosure provides supplemental facts and methodologies intended to enhance understanding of Schedule P reserve data. It provides additional
More informationIASB Educational Session Non-Life Claims Liability
IASB Educational Session Non-Life Claims Liability Presented by the January 19, 2005 Sam Gutterman and Martin White Agenda Background The claims process Components of claims liability and basic approach
More informationRESERVEPRO Technology to transform loss data into valuable information for insurance professionals
RESERVEPRO Technology to transform loss data into valuable information for insurance professionals Today s finance and actuarial professionals face increasing demands to better identify trends for smarter
More informationReinsurance Contracts: Clause and Effect
Reinsurance Contracts: Clause and Effect Session #607 Panel Members Pat Larsen, CPCU, ARe Vice President, Ceded Reinsurance/Account Executive American Agricultural Insurance Company Paul Poston, CPCU,
More informationBasic Track I CLRS September 2009 Chicago, IL
Basic Track I 2009 CLRS September 2009 Chicago, IL Introduction to Loss 2 Reserving CAS Statement of Principles Definitions Principles Considerations Basic Reserving Techniques Paid Loss Development Method
More informationReport of the American Academy of Actuaries Long Term Care Risk Based Capital Work Group. NAIC Capital Adequacy Task Force
Supplement to the Report of the American Academy of Actuaries Long Term Care Risk Based Capital Work Group To the NAIC Capital Adequacy Task Force September 2004 The American Academy of Actuaries is the
More informationSOCIETY OF ACTUARIES Introduction to Ratemaking & Reserving Exam GIIRR MORNING SESSION. Date: Wednesday, April 29, 2015 Time: 8:30 a.m. 11:45 a.m.
SOCIETY OF ACTUARIES Exam GIIRR MORNING SESSION Date: Wednesday, April 29, 2015 Time: 8:30 a.m. 11:45 a.m. INSTRUCTIONS TO CANDIDATES General Instructions 1. This examination has a total of 100 points.
More informationBest Captive Practices for 831(b)s Do Them Right or Don t Do Them At All
Best Captive Practices for 831(b)s Do Them Right or Don t Do Them At All Webcast provided by ICCIE Derek Freihaut Charles J. (Chaz) Lavelle Presenters: Joe LaMantia III Patrick Theriault Monday, March
More informationTHE COMIC-CON OF RISK FINANCING
THE COMIC-CON OF RISK FINANCING RIF006 Speakers: Barbara Benson, VP Risk Solution, Willis Towers Watson Scott Silitsky, VP Risk Management, thyssenkrupp Elevator Corporation Learning Objectives At the
More informationSociety of Actuaries in Ireland
Society of Actuaries in Ireland Information and Assistance Note GI-1: Data checks for the purposes of Non-Life (Re)Insurance Statements of Actuarial Opinion Issued by the Society of Actuaries in Ireland,
More informationGeneral Insurance Introduction to Ratemaking & Reserving Exam
Learn Today. Lead Tomorrow. ACTEX Study Manual for General Insurance Introduction to Ratemaking & Reserving Exam Spring 2018 Edition Ke Min, ACIA, ASA, CERA ACTEX Study Manual for General Insurance Introduction
More informationSOCIETY OF ACTUARIES Introduction to Ratemaking & Reserving Exam GIIRR MORNING SESSION. Date: Wednesday, November 1, 2017 Time: 8:30 a.m. 11:45 a.m.
SOCIETY OF ACTUARIES Exam GIIRR MORNING SESSION Date: Wednesday, November 1, 2017 Time: 8:30 a.m. 11:45 a.m. INSTRUCTIONS TO CANDIDATES General Instructions 1. This examination has a total of 100 points.
More informationHEALTH PREMIUMS and HEALTH CLAIM RESERVES LR016, LR020 and LR021
HEALTH PREMIUMS and HEALTH CLAIM RESERVES LR016, LR020 and LR021 Basis of Factors Risk-based capital factors for Health insurance are applied to medical and disability income, long-term care insurance
More informationThe old Exam 6 Second Edition G. Stolyarov II,
The Actuary s Free Study GUIDE for The old Exam 6 Second Edition G. Stolyarov II, ASA, ACAS, MAAA, CPCU, ARe, ARC, API, AIS, AIE, AIAF First Edition Published in July-October 2010 Second Edition Published
More informationState of Florida Division of Workers Compensation - Self Insurance Section
State of Florida Division of Workers Compensation - Self Insurance Section Checklist to accompany the annual actuarial report for loss reserve calculation INSTRUCTIONS: This form should be completed by
More informationTechnical Provisions in Reinsurance: The Actuarial Perspective
Technical Provisions in Reinsurance: The Actuarial Perspective IAIS Reinsurance Subcommittee Copenhagen May 30, 2002 Presented by Dr. Hans Peter Boller, Converium Ltd (Switzerland) on behalf of the International
More information3/10/2014. Exploring the Fundamental Insurance Equation. CAS Antitrust Notice. Fundamental Insurance Equation
Exploring the Fundamental Insurance Equation Eric Schmidt, FCAS Associate Actuary Allstate Insurance Company escap@allstate.com CAS RPM 2014 CAS Antitrust Notice The Casualty Actuarial Society is committed
More informationInternational Practice of Calculation of Insurance Reserves and Shares of Reinsurers in Insurance Reserves for Non-life Insurance
International Practice of Calculation of Insurance Reserves and Shares of Reinsurers in Insurance Reserves for Non-life Insurance Andrey Safonov Russian Guild of Actuaries (Russia) Types of Reserves Start
More informationActuarial Review of the Self-Insured Liability Program
Actuarial Review of the Self-Insured Liability Program Outstanding Liabilities as of June 30, 2013 and June 30, 2014 Forecast for Program Years 2013-14 and 2014-15 Presented to Mendocino County December
More informationPatrik. I really like the Cape Cod method. The math is simple and you don t have to think too hard.
Opening Thoughts I really like the Cape Cod method. The math is simple and you don t have to think too hard. Outline I. Reinsurance Loss Reserving Problems Problem 1: Claim report lags to reinsurers are
More informationOHIO PLAN RISK MANAGEMENT, INC. Columbus, Ohio. FINANCIAL STATEMENTS December 31, 2016 and 2015
OHIO PLAN RISK MANAGEMENT, INC. Columbus, Ohio FINANCIAL STATEMENTS Columbus, Ohio FINANCIAL STATEMENTS CONTENTS INDEPENDENT AUDITOR S REPORT... 1 MANAGEMENT S DISCUSSION AND ANALYSIS (UNAUDITED)... 3
More informationReinsurance Symposium 2016
Reinsurance Symposium 2016 MAY 10 12, 2016 GEN RE HOME OFFICE, STAMFORD, CT A Berkshire Hathaway Company Reinsurance Symposium 2016 MAY 10 12, 2016 GEN RE HOME OFFICE, STAMFORD, CT Developing a Treaty
More information374 Meridian Parke Lane, Suite C Greenwood, IN Phone: (317) Fax: (309)
374 Meridian Parke Lane, Suite C Greenwood, IN 46142 Phone: (317) 889-5760 Fax: (309) 807-2301 John E. Wade, ACAS, MAAA JWade@PinnacleActuaries.com October 15, 2009 Eric Lloyd Manager Department of Financial
More informationSecond Revision Educational Note. Premium Liabilities. Committee on Property and Casualty Insurance Financial Reporting. July 2016.
Second Revision Educational Note Premium Liabilities Committee on Property and Casualty Insurance Financial Reporting July 2016 Document 216076 Ce document est disponible en français 2016 Canadian Institute
More informationVALUATIONS OF GENERAL INSURANCE CLAIMS
PROFESSIONAL STANDARD 300 VALUATIONS OF GENERAL INSURANCE CLAIMS INDEX 1 INTRODUCTION 3 1.1 Application 3 1.2 Classification 3 1.3 Background 4 1.4 Purpose 4 1.5 Previous versions 4 1.6 Legislation and
More information2012 Health Care Workers Compensation Barometer
Aon Risk Solutions 2012 Health Care Workers Compensation Barometer Actuarial Analysis September 2012 Risk. Reinsurance. Human Resources. Empower Results 2012 Health Care Workers Compensation Barometer
More informationINTRODUCTION TO EXPERIENCE RATING Reinsurance Boot Camp Dawn Happ, Senior Vice President Willis Re
INTRODUCTION TO EXPERIENCE RATING 2013 Reinsurance Boot Camp Dawn Happ, Senior Vice President Willis Re Agenda Basic experience rating methodology Credibility weighting with exposure rate Diagnostics:
More informationOHIO PLAN RISK MANAGEMENT, INC. Columbus, Ohio. FINANCIAL STATEMENTS December 31, 2015 and 2014
OHIO PLAN RISK MANAGEMENT, INC. Columbus, Ohio FINANCIAL STATEMENTS Columbus, Ohio FINANCIAL STATEMENTS CONTENTS INDEPENDENT AUDITOR S REPORT... 1 MANAGEMENT S DISCUSSION AND ANALYSIS (UNAUDITED)... 3
More informationMEDAMERICA INSURANCE COMPANY. Address: 165 Court Street, Rochester, New York Series 11 Group Actuarial Memorandum.
MEDAMERICA INSURANCE COMPANY Address: 165 Court Street, Rochester, New York 14647 Series 11 Group Actuarial Memorandum April 27, 2017 Product Comprehensive Form Comprehensive Certificate Number GRP11-341-MA-MD-601
More informationThe Reinsurance Placement Cycle
Session 507 Tuesday, June 10, 2014 1:45pm 3:15pm IASA 86 TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW Overview This will be an interactive session describing the placement of a reinsurance program
More informationReserve Estimates: May 26, Raunak Jha
Reserve Estimates: The Blended Way May 26, 2011 Raunak Jha Deloitte Consulting India Pvt. Ltd Agenda Robust Reserving Process Popular Methods Blended Methods Bornhuetter- Ferguson Method The Cape Cod approach
More informationWorkers compensation: what about frequency?
z Workers compensation: what about frequency? Moderator: Michael Dolan, FCAS, MAAA Presenters: Arthur Cohen, ACAS, MAAA Ian Sterling, FCAS, MAAA CAS Casualty Loss Reserve Seminar 15-16 September 2011 Antitrust
More informationReinsurance 101: an Overview Session 107
Reinsurance 101: an Overview Session 107 Monday, June 9, 2014 1:30pm 3:00pm IASA 86 TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW Introductions Tim Corley Tim is a Senior Solutions Executive for Inpoint
More informationState of Florida Office of Insurance Regulation Financial Services Commission
State of Florida Office of Insurance Regulation Actuarial Peer Review and Analysis of the Ratemaking Processes of the National Council on Compensation Insurance, Inc. January 21, 2010 January 21, 2010
More informationActuarial Review of the Self-Insured Liability & Property Program
Actuarial Review of the Self-Insured Liability & Property Program Outstanding Liabilities as of June 30, 2017 Forecast for Program Year 2017-18 Presented to Santa Clara County Schools Insurance Group March
More informationReinsurance Loss Reserving Patrik, G. S. pp
Section Description Reinsurance Loss Reserving 1 Reinsurance Loss Reserving Problems 2 Components of a Reinsurer s Loss Reserve 3 Steps in Reinsurance Loss Reserving Methodology 4 Methods for Short, Medium
More informationThe Feasibility Process
The Feasibility Process Moderator: Derek Freihaut Principal and Consulting Actuary; Pinnacle Actuarial Resources Panelists: Patrick Theriault Managing Director; Michael Meehan Consultant; Milliman Strategic
More informationNEW ZEALAND SOCIETY OF ACTUARIES PROFESSIONAL STANDARD NO. 30 VALUATIONS OF GENERAL INSURANCE CLAIMS MANDATORY STATUS EFFECTIVE DATE: 31 DECEMBER 2017
NEW ZEALAND SOCIETY OF ACTUARIES PROFESSIONAL STANDARD NO. 30 VALUATIONS OF GENERAL INSURANCE CLAIMS MANDATORY STATUS EFFECTIVE DATE: 31 DECEMBER 2017 1. INTRODUCTION 3 1.1 Application 3 1.2 Background
More information2 COMMENCEMENT DATE 5 3 DEFINITIONS 5 4 MATERIALITY 8. 5 DOCUMENTATION Requirement for a Report Content of a Report 9
PROFESSIONAL STANDARD 300 VALUATIONS OF GENERAL INSURANCE CLAIMS INDEX 1 INTRODUCTION 3 1.1 Application 3 1.2 Classification 3 1.3 Background 3 1.4 Purpose 4 1.5 Previous versions 4 1.6 Legislation and
More informationFinancial Report For the year ended 31 December 2012 ANNUAL REPORT 2012
Financial Report For the year ended 31 December ANNUAL REPORT 31 Statement of Comprehensive Income RACQ Group Note 3 Insurance claims expense 2(a) (399,895) (600,348) Outwards reinsurance premium expense
More informationWhat to Do When the Actuary s Answer is Too High. Timothy C. Mosler, FCAS, MAAA
What to Do When the Actuary s Answer is Too High Timothy C. Mosler, FCAS, MAAA February 25, 2016 Agenda Tim Mosler s Background Disclaimer Basics of Reserve/Funding Analysis 3 Reactions When the Client
More informationConsolidated Statement of Financial Position
Consolidated Statement of Financial Position March 31 Assets Cash and cash equivalents $ 27,128 $ 45,815 Accrued interest 75,863 55,327 Assets held for sale (note 5) 25,712 - Financial investments (note
More informationMEMORANDUM OF UNDERSTANDING EXCESS LIABILITY PROGRAM
Adopted: March 5, 1993 Amended: October 2, 1998 Amended: October 6, 2006 Amended: March 6, 2009 MEMORANDUM OF UNDERSTANDING EXCESS LIABILITY PROGRAM This Memorandum of Understanding is entered into by
More informationStatement No. 30 of the. Governmental Accounting Standards Board. Risk Financing Omnibus. an amendment of GASB Statement No. 10
NO. 131-A FEBRUARY 1996 Governmental Accounting Standards Series Statement No. 30 of the Governmental Accounting Standards Board Risk Financing Omnibus an amendment of GASB Statement No. 10 Governmental
More informationCaradoc Townsend Mutual Insurance Company. Consolidated Financial Statements December 31, 2018
Consolidated Financial Statements December 31, 2018 Index to Consolidated Financial Statements December 31, 2018 MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING 1 Page INDEPENDENT AUDITOR'S REPORT
More informationRisk Transfer Analysis
Risk Transfer Analysis CLRS 2009 Seminar Paul A. Vendetti, FCAS, MAAA Risk Transfer Principle based No bright-line indicator 10/10 Rule ERD at 1.0% It is an accounting decision CEO and CFO attest to the
More informationRISK AND BENEFIT SERVICES Business Plan Fiscal Year
MARION COUNTY BOARD OF COUNTY COMMISSIONERS RISK AND BENEFIT SERVICES Business Plan Fiscal Year 2012-2013 QR code for department external website QR code for department business plan 521 SE 26 th Court,
More informationAsia Insurance (Philippines) Corporation. Financial Statements As at and for the years ended December 31, 2012 and 2011
Asia Insurance (Philippines) Corporation Financial Statements As at and for the years ended December 31, 2012 and 2011 Asia Insurance (Philippines) Corporation Statements of Financial Position December
More informationReinsurance (Passing grade for this exam is 74)
Supplemental Background Material NAIC Examiner Project Course CFE 3 (Passing grade for this exam is 74) Please note that this study guide is a tool for learning the materials you need to effectively study
More informationREGULATION ON CALCULATION AND RETENTION OF TECHNICAL AND MATHEMATICAL PROVISIONS FOR LIFE AND NON-LIFE INSURERS. Article 1 Scope and Purpose
Based on Article 35, Paragraph 1, Subparagraph 1.1 of the Law No. 03/L209 on the Central Bank of the Republic of Kosovo (Official Gazette of the Republic of Kosovo, No. 77/16 August 2010) and Article 4,
More informationEMB Consultancy LLP. Reserving for General Insurance Companies
EMB Consultancy LLP Reserving for General Insurance Companies Jonathan Broughton FIA March 2006 Programme Use of actuarial reserving techniques Data Issues Chain ladder projections: The core tool Bornhuetter
More informationPartnerRe Ltd Loss Development Triangles
2014 Loss Development Triangles Loss Development Triangle Cautionary Language The information in this financial supplement is for informational purposes only and is current only as of its stated date,
More informationMEDAMERICA INSURANCE COMPANY Address: 165 Court Street, Rochester, New York Series 11 and Prior Actuarial Memorandum.
MEDAMERICA INSURANCE COMPANY Address: 165 Court Street, Rochester, New York 14647 Series 11 and Prior Actuarial Memorandum August 27, 2018 Product Prior to Series 11 Facility Only Form Comprehensive Form
More informationInterpolation Along a Curve
Interpolation Along a Curve Joseph Boor, FCAS, Ph.D., CERA Actuary The Florida Office of Insurance Regulation Presentation to 2014 Casualty Actuarial Society Annual Meeting November 11, 2014 1 Antitrust
More informationSOCIETY OF ACTUARIES Introduction to Ratemaking & Reserving Exam GIIRR MORNING SESSION. Date: Wednesday, October 30, 2013 Time: 8:30 a.m. 11:45 a.m.
SOCIETY OF ACTUARIES Exam GIIRR MORNING SESSION Date: Wednesday, October 30, 2013 Time: 8:30 a.m. 11:45 a.m. INSTRUCTIONS TO CANDIDATES General Instructions 1. This examination has a total of 100 points.
More informationMEMORANDUM OF UNDERSTANDING GENERAL LIABILITY PROGRAM II
MEMORANDUM OF UNDERSTANDING GENERAL LIABILITY PROGRAM II Adopted: December 11, 1990 Effective: February 15, 1991 Amended: March 11, 2004 Amended: October 5, 2006 Amended: December 8, 2011 This Memorandum
More informationUsing Reserve Disclosures: From the Outside Looking In. Casualty Loss Reserve Seminar September 7, 2012 Denver, Colorado, USA
Using Reserve Disclosures: From the Outside Looking In Casualty Loss Reserve Seminar September 7, 2012 Denver, Colorado, USA Introductions Panelists Smitesh Davé, Corporate Actuary, Travelers Julia Ferguson,
More information2011 Annual Report THE GUARANTEE COMPANY OF NORTH AMERICA
2011 Annual Report EXECUTIVE REPORT Net Earnings for the 2011 year were $34 million, resulting in an increase in retained earnings of $26 million to $440 million at December 31, 2011. Gross written premiums
More informationSupplemental Background Material. Course CFE 3. Reinsurance. (Passing grade for this exam is 74%)
Supplemental Background Material Course (Passing grade for this exam is 74%) Please note that this study guide is a tool for learning the materials you need to effectively study for this examination. As
More informationFebruary 11, Review of Alberta Automobile Insurance Experience. as of June 30, 2004
February 11, 2005 Review of Alberta Automobile Insurance Experience as of June 30, 2004 Contents 1. Introduction and Executive Summary...1 Data and Reliances...2 Limitations...3 2. Summary of Findings...4
More informationACTEX ACTEX Study Manual for Spring 2018 Edition Volume I Peter J. Murdza, Jr., FCAS David Deacon, ACAS, MAAA, CPCU, CLU, ChFC
Learn Today. Lead Tomorrow. ACTEX Study Manual for CAS Exam 5 Spring 2018 Edition Volume I Peter J. Murdza, Jr., FCAS David Deacon, ACAS, MAAA, CPCU, CLU, ChFC ACTEX Study Manual for CAS Exam 5 Spring
More informationExcess Reinsurance is a coverage purchased by insurance carriers to limit loss in a year
Excess Medical Reinsurance Treaty Considerations By Daniel Wolak Excess Reinsurance is a coverage purchased by insurance carriers to limit loss in a year from any one claim. This article addresses the
More informationNew Trustee Orientation. NLC-RISC TRUSTEES CONFERENCE 2017 Indianapolis, Indiana
New Trustee Orientation NLC-RISC TRUSTEES CONFERENCE 2017 Indianapolis, Indiana 1 New Trustee Questions Why were pools created? How do pools differ from each other? What should I know about my own pool?
More informationIFRS 17. New Accounting Perspective. KPMG Advisory (China) November 2017
IFRS 17 New Accounting Perspective KPMG Advisory (China) November 2017 Background & overview Background & overview Milestones 2001 IFRS4: IASB initiation 2004 IFRS4: release 2010 IFRS 4 Phase II: 1 st
More informationWorkers Compensation Insurance Rating Bureau of California. July 1, 2018 Pure Premium Rate Filing REG
Workers Compensation Insurance Rating Bureau of California July 1, 2018 Pure Premium Rate Filing REG-2018-00006 Submitted: April 9, 2018 WCIRB California 1221 Broadway, Suite 900 Oakland, CA 94612 Tel
More informationCalculating a Loss Ratio for Commercial Umbrella. CAS Seminar on Reinsurance June 6-7, 2016 Ya Jia, ACAS, MAAA Munich Reinsurance America, Inc.
Calculating a Loss Ratio for Commercial Umbrella CAS Seminar on Reinsurance June 6-7, 2016 Ya Jia, ACAS, MAAA Munich Reinsurance America, Inc. Antitrust Notice The Casualty Actuarial Society is committed
More informationCOMMITTEE ON PROPERTY & CASUALTY INSURANCE FINANCIAL REPORTING EFFECTIVE JANUARY 1, 1994
FINAL PROVISION FOR ADVERSE DEVIATIONS PROPERTY & CASUALTY INSURANCE COMPANIES COMMITTEE ON PROPERTY & CASUALTY INSURANCE FINANCIAL REPORTING FINAL VERSION AS APPROVED BY COUNCIL NOVEMBER 1993 EFFECTIVE
More informationTopic: Accounting for Reinsurance: Questions and Answers about FASB Statement No Revised: December 1998; September 1999; September 2001 *
Topic No. D-34 Topic: Accounting for Reinsurance: Questions and Answers about FASB Statement No. 113 Date Discussed: July 22, 1993 Revised: December 1998; September 1999; September 2001 * The Task Force
More informationIndividual Disability Insurance Claim Incidence Study
The Report committee for Zhehui Mao Certifies that this is the approved version of the following report: Individual Disability Insurance Claim Incidence Study APPROVED BY SUPERVISING COMMITTEE: Supervisor:
More informationLong-term care services. Strategies and tools to manage risk and build your business in long-term care insurance
Long-term care services Strategies and tools to manage risk and build your business in long-term care insurance A commitment to long-term care Whether you re entering new markets, developing new products,
More informationIntroduction to Casualty Actuarial Science
Introduction to Casualty Actuarial Science Executive Director Email: ken@theinfiniteactuary.com 1 Casualty Actuarial Science Two major areas are measuring 1. Written Premium Risk Pricing 2. Earned Premium
More informationCENTRAL OHIO RISK MANAGEMENT ASSOCIATION (CORMA) ACTUARIAL REPORT ON UNPAID LOSS AND LOSS ADJUSTMENT EXPENSES AS OF SEPTEMBER 30, 2017
CENTRAL OHIO RISK MANAGEMENT ASSOCIATION (CORMA) ACTUARIAL REPORT ON UNPAID LOSS AND LOSS ADJUSTMENT EXPENSES AS OF SEPTEMBER 30, 2017 October 25, 2017 October 25, 2017 Sent Via Email Ms. Angel Mumma Director
More informationEnterprise Risk Management Framework: Is It Working Effectively or Is It Window Dressing?
Enterprise Risk Management Framework: Is It Working Effectively or Is It Window Dressing? Joseph F. Morris jmorris@pcicstrategies.com 215-901-0334 www.pcicstrategies.com Property Casualty Insurers Association
More informationA. GENERAL INFORMATION
Guidelines for Other than Private Passenger Rating Program for Change in Rates and Rating program A. GENERAL INFORMATION Section 602 of the Insurance Act and Sections 2, 4 and 5 of the Automobile Insurance
More informationSTATE OF CALIFORNIA DEPARTMENT OF INSURANCE 300 Capitol Mall, 17 th Floor Sacramento, CA PROPOSED DECISION AND ORDER
STATE OF CALIFORNIA DEPARTMENT OF INSURANCE 300 Capitol Mall, 17 th Floor Sacramento, CA 95814 PROPOSED DECISION AND ORDER JANUARY 1, 2019 WORKERS COMPENSATION CLAIMS COST BENCHMARK AND ADVISORY PURE PREMIUM
More informationSolvency II: Best Practice in Loss Reserving in Property and Casualty Insurance the foundation is critical
Solvency II: Best Practice NFT in Loss Reserving 1/2007... Solvency II: Best Practice in Loss Reserving in Property and Casualty Insurance the foundation is critical by Heike Klappach Heike Klappach heike.klappach@towersperrin.com
More informationKern High School District WORKERS COMPENSATION PROGRAM PRESENTATION SCOTT COLE, ED. D. DEPUTY SUPERINTENDENT, BUSINESS
Kern High School District WORKERS COMPENSATION PROGRAM PRESENTATION SCOTT COLE, ED. D. DEPUTY SUPERINTENDENT, BUSINESS Workers Compensation Insurance All California employers must provide workers compensation
More informationSession 47L, Health Reserve Setting. Moderator/Presenter: Marilyn M. McGaffin, ASA, MAAA
Session 47L, Health Reserve Setting Moderator/Presenter: Marilyn M. McGaffin, ASA, MAAA Presenters: David A. Berry, FSA, MAAA Lisa M. Parker, ASA, MAAA Andrew Z. Smith, ASA, MAAA SOA Antitrust Disclaimer
More informationInternal Model Industry Forum (IMIF) Workstream G: Dependencies and Diversification. 2 February Jonathan Bilbul Russell Ward
Internal Model Industry Forum (IMIF) Workstream G: Dependencies and Diversification Jonathan Bilbul Russell Ward 2 February 2015 020211 Background Within all of our companies internal models, diversification
More informationClaims Analysis From a Financial Perspective
Certified Public Accountants Accounting, Auditing, Consulting and Tax Claims Analysis From a Financial Perspective Presented by Herb McDuffee Marianne Stuart CPA James Marta CPA, ARPM Why is this important?
More information