IASB Educational Session Non-Life Claims Liability

Size: px
Start display at page:

Download "IASB Educational Session Non-Life Claims Liability"

Transcription

1 IASB Board Meeting Observer Note- Agenda Paper 10 January 2005 IASB Educational Session Non-Life Claims Liability Presented by the International Actuarial Association January 19, 2005 Sam Gutterman and Martin White

2 Agenda Background The claims process Components of claims liability and basic approach The loss development triangle Types of loss reserve methods Examples Some problems Disclosure Page 2

3 Background Scope Non-life insurance - Focus of this presentation is on general (property & casualty or P&C ) insurance Motor, personal property, fire, liability against suit, professional malpractice Liabilities for non-life insurance 1. Contract liability 2. Claims liability Focus of this presentation For other insurance, analysis is similar but uses simpler methods Page 3

4 Background P&C coverages Contracts are normally one year in duration - A few exceptions e.g., Japanese claim free savings contracts - Range from short-tail property to long-tail liability - Can include right of termination by one or both parties during the period Approaches described here also applicable to self-insurance and reinsurance Page 4

5 Background Claims groupings Similar types of claims are grouped to enhance accuracy of estimation process - By coverage With similar payment patterns If loss ratio is used, similar profit and expense margins - By period of claim incurral - But experience should be large enough to be reliable A single contract can contain several coverages - Automobile damage to vehicle, liability, collision, medical payments, uninsured motorists, - Commercial packages property and liability Page 5

6 Background Data organization Claims organized by - Coverage - Accounting (loss) date - Report date - Recorded date - Measurement dates Typical problems - Changes in products, terms/conditions, business mix, rates, people Page 6

7 Background Loss date Claims liability arises as of a loss date within coverage period Definition can vary by coverage - Date of occurrence (accident date) - Report date for claims-made contract - Manifestation date for certain sicknesses - Purchase date for retroactive contract Page 7

8 Background Loss year Types of claims groupings - Accident / loss / report year - Calendar period of loss - Underwriting / policy year - Contracts written in period - Overlaps two calendar years - Used by Lloyd s In some cases, quarterly or semi-annual periods Subsequently measured by period since loss date Page 8

9 The claims process 20-Dec-2003 Accident occurs 3-Jan-2004 Potential claim reported to insurer 6-Jan-2004 Insurer records claim information e.g. 2,000 Formula-reserve 19-Jan-2004 Claims adjuster estimates ultimate amount 10,000 case reserve IBNR 18-Jan-2005 Claim closed (Possible reopen later) 2-Jan-2005 Payment sent 0 case reserve 23-Dec-2004 Settlement agreed 25,000 case reserve Change IBNER 5-July-2004 Claims adjuster reestimates if new information emerges Reinsurer notified if involved 20,000 reserve Change IBNER Page 9

10 Components of a claims liability Claims liability (often referred to as loss reserve) 1. Estimated ultimate payments, less payments to date or 2. Case reserve (assigned by adjuster or formula) + Bulk or IBNR reserve, theoretically separate but usually combined Incurred But Not Enough Reported (IBNER) - Case reserve development Incurred But Not Reported (or Recorded) reserve Includes associated expenses, possibly split - Allocable to claim (ALAE) - Not allocable to claim (ULAE) Page 10

11 Basic approach Actuarially sound reserves Based on estimates Derived from reasonable assumptions Using appropriate methods Inherent uncertainty In part due to time to settle Conceptually a range of values True value known only after all claims settled Page 11

12 Basic approach (continued) Estimates - Of ultimate losses by period of claims, their components, their timing, associated premiums (if loss ratios used) and their probability distribution (if stochastic methods used) - Data used almost always entity-specific where relevant - May be supplemented by industry experience when company doesn t have sufficient relevant experience - Limited relevant market experience - Based on financial reporting context, e.g., level of prudence Same approaches used for direct insurance, reinsurance and self-insurance Page 12

13 Basic approach (continued) Estimation principles are fairly simple - Group together similar coverages and claims - Evaluate how cohorts develop through historical patterns - Identify expected changes in internal and external factors - Apply past pattern to groups of outstanding claim groups - Result is the estimated liability The devil is in the details - Identify groupings properly - Determine relevant patterns - Reflect expected changes - Estimate future claim payments Page 13

14 Basic approach (continued) Claim emergence and loss settlement patterns vary significantly - Coverage contract terms and conditions - Direct or reinsurance assumed business - Underwriting intensity and mix of risks - Time period - Location country, state or neighborhood - Claims management and case estimate methodology - Mix of source of loss - Percent of asbestos claims caused by mesothelioma, or of complete property losses Impractical to separately quantify the effect of all of these Page 14

15 The loss development triangle What is it? Follows a cohort of similar claims incurred within a period through each subsequent reporting period to measure loss component patterns and trends to estimate patterns of future activity Can be used with - Cumulative paid losses - Incurred losses = cumulative paid losses + case reserves at end of each period - Number of claims - Size of claims - Case reserves Page 15

16 The loss development triangle (continued) Why is it used so often? - A useful way of both thinking about and presenting the emergence of claims information over time - Components usually exhibit identifiable trends over time - Makes estimating ultimate losses easier Number of years included in triangle varies by - Data available - Type of loss (e.g., speed of payment) - Relevancy of losses of older periods Diagonals represent status or activity at a measurement date or during specific calendar period Page 16

17 The loss development triangle (continued) Assumes claims experience exhibits patterns - Usually by period since claim date - Sometimes with calendar effect Change in claims management, e.g., settlement strategies or case reserve estimation techniques Inflation general or social Court / legal decisions Page 17

18 The loss development triangle An example Cumulative Paid (000) EZ INSURANCE COMPANY AUTO LIABILITY Accident Development State in Months Year Ultimate ? ? ? ? ? ? ? Page 18

19 The loss development triangle (continued) Patterns shown are multiplicative, evidenced by - Current period value divided by that of prior period - Link or loss development factors Ratios of losses at successive evaluations for a defined group of claims (e.g., accident year) The triangle is actually a rectangle - Experience in upper left triangle - Objective estimating bottom right triangle - Looks easy, but judgment always needed Page 19

20 Types of loss reserve methods 1. Case reserves - Based on claim-specific information available - Used in more mature periods 2. Loss ratio - Reserve = Ultimate loss paid through valuation date Ultimate loss = premiums x expected loss ratio - Sources include loss trend, rate change, industry, judgment, pricing assumption Page 20

21 Types of loss reserve methods (continued) 3. Development (chain-ladder) - Possibly the most common - Uses loss development triangles, with simple multiplicative link ratios - Applies to paid losses or incurred losses (cumulative paid + current case reserves) 4. Claim count x average size claim (frequency / severity) - Separately estimates number of claims and their severity - Can estimate each independently Uses loss development triangles - Ultimate loss = Ultimate count x Ultimate average size Page 21

22 Types of loss reserve methods (continued) 5. Bornhuetter-Ferguson - Weighted average (based on percentage expected to be reported) of Incurred (or paid) claims to date Initial (or updated) estimate of ultimate losses for claim cohort based on - Loss ratio or exposure x estimated loss per exposure - Used in most recent year or two or where limited reported losses to date such as assumed reinsurance 6. Many other methods Almost always multiple methods evaluated Page 22

23 Development method -- example Cumulative Paid (CU 000s) EZ INSURANCE COMPANY AUTO LIABILITY Accident Development State in Months Year Accident Paid Development Factors between months Year Ult Unweighted average point average Average excluding high/low Volume weighted average Selected LDFs Cumulative LDFs Page 23

24 Development method loss development factors Major assumption development is a multiplicative process Selected development factor for 2003, 12 to 24 month = 280 / 128 Cumulative development factor - Multiply all development factors from current point to last experience point times tail factor (to take to ultimate value) = 1.55 x x Applied to relevant diagonal value Warning not all triangles this well-behaved Page 24

25 Development method -- example (continued) Reserves Based on Paid Development Method EZ INSURANCE COMPANY AUTO LIABILITY (CU 000s) Accident Paid Selected Estimated Unpaid Case Year to Date CLFactor Ultimate Losses Reserves (1) (2) (3) (4) (5) (6) from the diagonal cumulative LDFs (2) x (3) (4) - (2) , , , ,342 1, Total 3,436 7,302 3,866 1,770 Page 25

26 The loss development triangle The tail Tail factor takes losses from experience in the triangle to their ultimate value - In example, takes losses after 7 years to their ultimate value - Difficult with limited data - Use industry or similar entity experience if relevant Results can be quite sensitive to tail - Because applied to cumulative losses - For example, a 2% change could result in a 40% increase in IBNR How Much Tail Can There Be? Development in Reinsured Layers Selected Cumulative Age to Ultimate Factors Source: Reinsurance Association of America data Line of Business 15 Years to Ultimate 25 Years to Ultimate Workers Compensation General Liability AL Treaty Page 26

27 Expected loss ratio method Expected loss ratio equals - Expected ultimate losses / Earned premium, or - 100% - contract expenses taxes expected profit margin IBNR = Expected ultimate losses paid losses case reserves Basis - Pricing assumptions, trended claim and costs, industry data - Since treatment of contract liability can influence earnings of premium, contract liability can influence loss ratio Useful if - New or radical change in coverage - Immature accident years for long-tailed coverages Page 27

28 Expected Loss Ratio Method example Earned Premium = 100,000 Expected Loss Ratio = 65% Paid Losses to date = 10,000 Case Reserves = 13,000 Total Reserve = (100,000 x 0.65) - 10,000 10,000 = 65,000 - = 55,000 IBNR Reserve = 55,000-13,000 Page 28

29 Bornhuetter-Ferguson method Weighted average of results of development method and loss ratio method - Weight based on expected percentage reported at valuation time for a given accident period - Uses historical experience directly to estimate ultimate losses Several alternatives to loss ratio value can be used - Exposure x Exposure units (such as contracts inforce) - Expected claim frequency x expected average size claim - Prior estimate Used when insufficiently reliable reported claim experience to date or long-tail business, but don t want to ignore current results Page 29

30 Baseball example How many home runs will Barry Bonds hit this year, given: - He has hit 20 home runs through 40 games - There are 160 games in the season Information needed for estimate based on various actuarial methods - Expected Ultimate Value = 40 (before season started) - Factor to project Current Diagonal to Ultimate Value Current Diagonal = 20 home runs hit through ¼ of season Development method: 80 = 20 x 4 (4 = cumulative development factor) Loss ratio method: experience) 40 (initial expectation, unadjusted by Bornhuetter-Ferguson: 50 = 20 + ¾ x 40 (weighted average of experience and initial expectation, times percent of expected unreported) Choice depends on knowledge of his current health, whether he hits better in the spring or in the fall, Page 30

31 Some problems Choice or use of methods No method is perfect and no method can be applied in all situations In practice, common to use different methods for different periods since accident year, e.g. - Case reserves for oldest years - Development method for years Bornhuetter-Ferguson for most recent year Examine results from several methods for each time period Significant effect of changes in estimates on reserves and even greater effect on income Page 31

32 Some problems Uncertainty Significant uncertainty in estimates - Although a single number is needed for balance sheet - A range may be more appropriate, can be based on - Different methods, LDFs, probability distributions, - Judgment is always needed Must understand the business, claims process and environment If something can go wrong, it will Common to continue to refine data, assumptions and methods Page 32

33 Some problems Uncertainty and stochastic methods With increasing emphasis on effect of risk, stochastic methods have become more common Requires estimates of probability distribution of claim liability components - Ultimate loss, frequency, severity and timing Results in estimates of frequency distribution of possible outcomes - Can produce confidence intervals, with enhanced understanding of risks But danger of overstating the precision of the resulting estimate based on a further set of assumptions Page 33

34 Key Assumptions Potential Problems Claims settlement patterns unchanged Increased delays in claim closing rates. Case reserving practices & philosophies unchanged No claim processing changes Policy limits have no impact on loss development Conscious effort to improve case reserve adequacy Introduction of new case reserving procedures. Unreported change in data processing Increase in claim backlog Revised claim payment recording procedures. Changed mix of full policy limits claims or changed policy limits. Page 34

35 Key Assumptions Potential Problems Loss development unaffected by changing loss cost trends No change in mix of business Surges in inflation Increased litigation or new court rulings Diminished policy defenses. Changed reinsurance program Increased long-tail exposures Introduction of new or revised coverages. No cyclical loss development Underwriting cycles impact pricing adequacy, claims settlement or reserving practices. Page 35

36 Key Assumptions Potential Problems No inflation or if there has been, fully reflected in experience to date Inflation general or social/legal, that varies by calendar period or unequally by coverage types No data anomalies Catastrophic or unusual losses reflected in loss experience Unusual claim settlement/reporting delays Unusually large claim(s) If reinsurer, reporting problems with direct writers or lack of sufficient data Page 36

37 Monitoring results Retrospective testing Important to continue asking how assumptions performed - Through continual challenge of your own assumptions Applicable to each claim liability component Examples of questions to answer - How many new claims were expected this year - What average claim size was expected - Why was there a deviation from estimates Due to random fluctuation or changes in conditions that need to be reflected next time? Page 37

38 Disclosure The best way to monitor loss development for most lines is through loss triangles - Power and importance of how did we estimate - Retrospective loss triangles can show changes in loss reserve estimates over time - Meaningful period typically five or ten years, depending on the speed of claims closure, but earlier period may no longer be relevant Although discounted reserves can be used in a triangle, care is needed to compare diagonals on an apples-to-apples basis Page 38

Basic Track I. 2011 CLRS September 15-16, 2011 Las Vegas, Nevada

Basic Track I. 2011 CLRS September 15-16, 2011 Las Vegas, Nevada Basic Track I 2011 CLRS September 15-16, 2011 Las Vegas, Nevada Introduction to Loss 2 Reserving CAS Statement of Principles Definitions Principles Considerations Basic Reserving Techniques Paid Loss Development

More information

2014 Statutory Combined Annual Statement Schedule P Disclosure

2014 Statutory Combined Annual Statement Schedule P Disclosure 2014 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 information

Chapter 7 Development Technique

Chapter 7 Development Technique Sec Description Pages 1 Introduction 84 2 Key Assumptions 84 3 Common Uses of the Development Technique 84-85 4 Mechanics of the Development Technique 85-92 5 Unpaid Claim Estimate Based on the Development

More information

Educational Note. Premium Liabilities. Committee on Property and Casualty Insurance Financial Reporting. November 2014.

Educational Note. Premium Liabilities. Committee on Property and Casualty Insurance Financial Reporting. November 2014. Educational Note Premium Liabilities Committee on Property and Casualty Insurance Financial Reporting November 2014 Document 214114 Ce document est disponible en français 2014 Canadian Institute of Actuaries

More information

Session 25 L, Introduction to General Insurance Ratemaking & Reserving: An Integrated Look. Moderator: W. Scott Lennox, FSA, FCAS, FCIA

Session 25 L, Introduction to General Insurance Ratemaking & Reserving: An Integrated Look. Moderator: W. Scott Lennox, FSA, FCAS, FCIA Session 25 L, Introduction to General Insurance Ratemaking & Reserving: An Integrated Look Moderator: W. Scott Lennox, FSA, FCAS, FCIA Presenter: Houston Cheng, FCAS, FCIA Society of Actuaries 2013 Annual

More information

GLOSSARY OF ACTUARIAL AND RATEMAKING TERMINOLOGY

GLOSSARY OF ACTUARIAL AND RATEMAKING TERMINOLOGY GLOSSARY OF ACTUARIAL AND RATEMAKING TERMINOLOGY Term Accident Accident Date Accident Period Accident Year Case- Incurred Losses Accident Year Experience Acquisition Cost Actuary Adverse Selection (Anti-Selection,

More information

Intermediate Track II

Intermediate Track II Intermediate Track II September 2000 Minneapolis, Minnesota 1 This Session Will Discuss 1. Bornhuetter-Ferguson Method 2. Average Hindsight Method 3. Average Incremental Paid Method 2 BORNHUETTER- FERGUSON

More information

Best Estimate of the Technical Provisions

Best Estimate of the Technical Provisions Best Estimate of the Technical Provisions FSI Regional Seminar for Supervisors in Africa on Risk Based Supervision Mombasa, Kenya, 14-17 September 2010 Leigh McMahon BA FIAA GAICD Senior Manager, Diversified

More information

GUIDELINES ON VALUATION OF POLICY LIABILITIES OF GENERAL BUSINESS

GUIDELINES ON VALUATION OF POLICY LIABILITIES OF GENERAL BUSINESS Guideline No: ID 1/04 Issue Date: 24 August 2004 Last Updated: 3 January 2008 GUIDELINES ON VALUATION OF POLICY LIABILITIES OF GENERAL BUSINESS [Note: These Guidelines should be read in conjunction with

More information

XYZ INSURANCE COMPANY GENERAL LIABILITY LOSS AND ALLOCATED LOSS ADJUSTMENT EXPENSE RESERVES. As of December 31, 2008

XYZ INSURANCE COMPANY GENERAL LIABILITY LOSS AND ALLOCATED LOSS ADJUSTMENT EXPENSE RESERVES. As of December 31, 2008 XYZ INSURANCE COMPANY GENERAL LIABILITY LOSS AND ALLOCATED LOSS ADJUSTMENT EXPENSE RESERVES TABLE OF CONTENTS INTRODUCTION...2 Purpose, Distribution and Use...2 Limitations...2 EXECUTIVE SUMMARY... 3 Loss

More information

Health Insurance Claim Reserves

Health Insurance Claim Reserves Health Insurance Claim Reserves Valuation Actuary Symposium Session 2 PD Austin, Texas Sept. 17, 2007 Health Insurance Claim Reserves - Basics Mark E. Billingsley, FSA, MAAA American Financial Group Health

More information

Reserving for Extended Reporting Endorsement Coverage, Including the Death, Disability, and Retirement Policy Provision

Reserving for Extended Reporting Endorsement Coverage, Including the Death, Disability, and Retirement Policy Provision Including the Death, Disability, and Retirement Policy Provision Susan J. Forray, FCAS, MAAA Abstract. Writers of physicians professional liability (PPL) claims-made coverage typically offer a death, disability

More information

SYLLABUS OF BASIC EDUCATION Fall 2016 Basic Techniques for Ratemaking and Estimating Claim Liabilities Exam 5

SYLLABUS OF BASIC EDUCATION Fall 2016 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. set forth, usually in broad terms, what the candidate should be able to do in actual

More information

SOA Health 2007 Spring Meeting Valuation and Reserving Techniques

SOA Health 2007 Spring Meeting Valuation and Reserving Techniques SOA Health 2007 Spring Meeting Valuation and Reserving Techniques Property & Casualty Reserving Techniques Theresa Bourdon, FCAS, MAAA CAS Statement of Principles Regarding P&C Loss and Loss Adjustment

More information

Using Claim Department Work Measurement Systems to Determine Claim Adjustment Expense Reserves. Joanne S. Spalla, FCAS, MAAA

Using Claim Department Work Measurement Systems to Determine Claim Adjustment Expense Reserves. Joanne S. Spalla, FCAS, MAAA Using Claim Department Work Measurement Systems to Determine Claim Adjustment Expense Reserves By Joanne S. Spalla, FCAS, MAAA ABSTRACT Using Claim Department Work Measurement Systems to Determine Claim

More information

Applying a Robust Actuarial Reserve Analysis to Long-Tailed General Insurance Coverage

Applying a Robust Actuarial Reserve Analysis to Long-Tailed General Insurance Coverage Applying a Robust Actuarial Reserve Analysis to Long-Tailed General Insurance Coverage By Charles Cicci, Debashish Banerjee, and Raunak Jha Abstract Actuaries are regularly presented with the challenge

More information

pwc.com.au NT WorkSafe Actuarial review of Northern Territory workers compensation scheme as at June 2014

pwc.com.au NT WorkSafe Actuarial review of Northern Territory workers compensation scheme as at June 2014 pwc.com.au NT WorkSafe Actuarial review of Northern Territory workers compensation scheme as at June 2014 30 June 2013 Key findings Funding ratio The following table shows the funding ratio for the scheme

More information

Endurance Specialty Holdings Ltd. 2015 Loss Development Triangles

Endurance Specialty Holdings Ltd. 2015 Loss Development Triangles 2015 Loss Development Triangles 2015 Loss Development Triangle Cautionary Language This report is for informational purposes only and is current as of December 31, 2015. We are under no obligation and

More information

ABC Auto Insurance Company Actuarial Review of Loss and LAE Reserves As of 12/31/11

ABC Auto Insurance Company Actuarial Review of Loss and LAE Reserves As of 12/31/11 ABC Auto Insurance Company Actuarial Review of Loss and LAE Reserves As of 12/31/11 Prepared by: Joe Actuary, ACAS, MAAA What s the Point Actuarial Consultants, Inc. Background and Scope ABC Auto Ins Co

More information

Estimation of Adjusting and Other Expense Reserves Utilizing Limited Historical Claim Report, Payment, and Closing Transaction Patterns

Estimation of Adjusting and Other Expense Reserves Utilizing Limited Historical Claim Report, Payment, and Closing Transaction Patterns Estimation of Adjusting and Other Expense Reserves Utilizing Limited Historical Claim Report, Payment, and Marc Pearl, FCAS, MAAA Peter Tomopoulos, ACAS, MAAA Abstract: The estimation of adjusting and

More information

Modelling Uncertainty in Claims Experience to Price General Insurance Contracts

Modelling Uncertainty in Claims Experience to Price General Insurance Contracts Modelling Uncertainty in Claims Experience to Price General Insurance Contracts Vanita Duggal Actuary Palisade Risk Conference, Mumbai January 13, 2015 What is Insurance? Coverage by contract whereby one

More information

FINAL RECOMMENDATIONS FOR PROPERTY-CASUALTY INSURANCE COMPANY FINANCIAL REPORTING

FINAL RECOMMENDATIONS FOR PROPERTY-CASUALTY INSURANCE COMPANY FINANCIAL REPORTING FINAL RECOMMENDATIONS FOR PROPERTY-CASUALTY INSURANCE COMPANY FINANCIAL REPORTING Issued by authority of Council January 1990 Canadian Institute of Actuaries 1 Institut Canadien des Actuaires SECTION I

More information

February 11, 2005. 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 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 information

Antitrust Notice 9/9/2013. Captive Insurance: Another View. Session Overview. Scott Anderson, Senior Vice President and Actuary, Gross Consulting

Antitrust Notice 9/9/2013. Captive Insurance: Another View. Session Overview. Scott Anderson, Senior Vice President and Actuary, Gross Consulting Captive Insurance: Another View Scott Anderson, Senior Vice President and Actuary, Gross Consulting Jeffrey Kadison, President, Practical Actuarial Solutions, Inc. Dave Provost, Deputy Commissioner, Captive

More information

ABSTRACT. Using Claim Department Work Measurement Systems to Determine Claim Adjustment

ABSTRACT. Using Claim Department Work Measurement Systems to Determine Claim Adjustment ABSTRACT Using Claim Department Work Measurement Systems to Determine Claim Adjustment Expense Reserves This paper discusses a methodology for establishing reserves for the portion of loss adjustment expense

More information

RE: Disclosure Requirements for Short Duration Insurance Contracts

RE: Disclosure Requirements for Short Duration Insurance Contracts INS-14 November 21, 2014 Mr. Russell G. Golden Chairman Financial Accounting Standards Board 401 Merritt 7 P.O. Box 5116 Norwalk, Connecticut 06856-5116 RE: Disclosure Requirements for Short Duration Insurance

More information

PROBLEMS IN MOTOR INSURANCE--CLAIM. NORTON E. MASTERSON Stevens Point, Wisconsin, (U.S.A.)

PROBLEMS IN MOTOR INSURANCE--CLAIM. NORTON E. MASTERSON Stevens Point, Wisconsin, (U.S.A.) PROBLEMS IN MOTOR INSURANCE--CLAIM RESERVES NORTON E. MASTERSON Stevens Point, Wisconsin, (U.S.A.) In his comprehensive paper entitled "A General Survey of Problems Involved in Motor Insurance", Dr. Carl

More information

Chapter 10 Run-off triangles

Chapter 10 Run-off triangles 0 INTRODUCTION 1 Chapter 10 Run-off triangles 0 Introduction 0.1 Run-off triangles Run-off triangles are used in general insurance to forecast future claim numbers and amounts. In this chapter we will

More information

Methodology. Discounting. MVM Methods

Methodology. Discounting. MVM Methods Methodology In this section, we describe the approaches taken to calculate the fair value of the insurance loss reserves for the companies, lines, and valuation dates in our study. We also describe a variety

More information

Insurance Regulatory Authority

Insurance Regulatory Authority Insurance Regulatory Authority IRA/PG/16 GUIDELINE ON VALUATION OF TECHNICAL LIABILITIES FOR GENERAL INSURERS MAY 2013 To: All Insurance & Reinsurance Companies GUIDELINE ON VALUATION OF INSURANCE TECHNICAL

More information

CAWCD INSURANCE COMPANY, INC. (A Component Unit of Central Arizona Water Conservation District) Phoenix, Arizona

CAWCD INSURANCE COMPANY, INC. (A Component Unit of Central Arizona Water Conservation District) Phoenix, Arizona (A Component Unit of Central Arizona Water Conservation District) Phoenix, Arizona FINANCIAL STATEMENTS TABLE OF CONTENTS PAGE INDEPENDENT AUDITOR S REPORT... 1 MANAGEMENT S DISCUSSION AND ANALYSIS...

More information

Quantitative Impact Study 1 (QIS1) Summary Report for Belgium. 21 March 2006

Quantitative Impact Study 1 (QIS1) Summary Report for Belgium. 21 March 2006 Quantitative Impact Study 1 (QIS1) Summary Report for Belgium 21 March 2006 1 Quantitative Impact Study 1 (QIS1) Summary Report for Belgium INTRODUCTORY REMARKS...4 1. GENERAL OBSERVATIONS...4 1.1. Market

More information

RS Official Gazette, No. 38/2015

RS Official Gazette, No. 38/2015 RS Official Gazette, No. 38/2015 Pursuant to Article 163, paragraph 6 of the Insurance Law ( RS Official Gazette, No. 139/2014) and Article 15, paragraph 1 of the Law on the National Bank of Serbia ( RS

More information

Guidance Note on Actuarial Review of Insurance Liabilities in respect of Employees Compensation and Motor Insurance Businesses

Guidance Note on Actuarial Review of Insurance Liabilities in respect of Employees Compensation and Motor Insurance Businesses Guidance Note on Actuarial Review of Insurance Liabilities in respect of Employees Compensation and Motor Insurance Businesses GN9 Introduction Under the Insurance Companies Ordinance (Cap. 41) ( Ordinance

More information

3. ASSET REVALUATION RESERVE The asset revaluation reserve represents the surplus in fair value of land and buildings after revaluation.

3. ASSET REVALUATION RESERVE The asset revaluation reserve represents the surplus in fair value of land and buildings after revaluation. GLOSSARY The following definitions have been provided to assist readers in gaining a better understanding of this Annual Report and its Financial Statements. 1. ACERH Australian Centre for Economic Research

More information

EDUCATIONAL NOTE VALUATION OF POLICY LIABILITIES P&C INSURANCE CONSIDERATIONS REGARDING CLAIM LIABILITIES AND PREMIUM LIABILITIES

EDUCATIONAL NOTE VALUATION OF POLICY LIABILITIES P&C INSURANCE CONSIDERATIONS REGARDING CLAIM LIABILITIES AND PREMIUM LIABILITIES EDUCATIONAL NOTE Educational notes do not constitute standards of practice. They are intended to assist actuaries in applying standards of practice in specific matters. Responsibility for the manner of

More information

RISK MARGINS FOR HEALTH INSURANCE. Adam Searle and Dimity Wall

RISK MARGINS FOR HEALTH INSURANCE. Adam Searle and Dimity Wall RISK MARGINS FOR HEALTH INSURANCE Adam Searle and Dimity Wall Structure of presentation Why this paper? The nature of health insurance Our approach Benchmarks LAT Limitations 2 AASB1023 Why this paper?

More information

I-FILE Standardized Rate Indication Workbook Homeowners, Mobile Homeowners, Dwelling Fire

I-FILE Standardized Rate Indication Workbook Homeowners, Mobile Homeowners, Dwelling Fire I-FILE Standardized Rate Indication Workbook Homeowners, Mobile Homeowners, Dwelling Fire House Insurance & Banking Subcommittee January 23, 2013 Ken Ritzenthaler, Actuary Property & Casualty Product Review

More information

WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY

WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY RETROSPECTIVE RATING PLAN PREMIUM ENDORSEMENT WRAP-UP CONSTRUCTION PROJECT MULTIPLE LINES This endorsement is issued because you chose to have the cost of the insurance rated retrospectively. This endorsement

More information

GIIRR Model Solutions Fall 2014

GIIRR Model Solutions Fall 2014 GIIRR Model Solutions Fall 2014 1. Learning Objectives: 1. The candidate will understand the key considerations for general insurance actuarial analysis. Learning Outcomes: (1l) Adjust historical earned

More information

WCIRB Report on June 30, 2014 Insurer Experience Released: September 11, 2014

WCIRB Report on June 30, 2014 Insurer Experience Released: September 11, 2014 Workers Compensation Insurance Rating Bureau of California WCIRB Report on June 3, 214 Insurer Experience Released: September 11, 214 WCIRB California 525 Market Street, Suite 8 San Francisco, CA 9415-2767

More information

EITF ABSTRACTS. Title: Accounting for Claims-Made Insurance and Retroactive Insurance Contracts by the Insured Entity

EITF ABSTRACTS. Title: Accounting for Claims-Made Insurance and Retroactive Insurance Contracts by the Insured Entity EITF ABSTRACTS Issue No. 03-8 Title: Accounting for Claims-Made Insurance and Retroactive Insurance Contracts by the Insured Entity Dates Discussed: March 13 14, 1986; May 1, 1986; July 24, 1986; May 19

More information

FASB issues enhanced disclosure guidance for insurer claim liabilities

FASB issues enhanced disclosure guidance for insurer claim liabilities No. US2015-10 June 18, 2015 What s inside: Background... 1 Summary of key provisions... 1 Detail of key provisions... 2 Scope... 3 Rollforward interim disclosure requirements... 3 Claims development table

More information

Actuarial and Business Issues: Implications for Non-life Insurance Accounting

Actuarial and Business Issues: Implications for Non-life Insurance Accounting Actuarial and Business Issues: Implications for Non-life Insurance Accounting Educational Presentation to the IASB 16 February 2005 Michael McCarter for the Group of North American Insurance Enterprises

More information

Premium Liabilities. Melissa Yan

Premium Liabilities. Melissa Yan Premium Liabilities Melissa Yan Short definition Introduction Liabilities arising from the insurer s unexpired risk at the balance date Regulatory reporting since July 2002 Determine minimum capital requirement

More information

Montana State Fund. Review of Rates Effective July 1, 2015 & Review of Claim Liability as of June 30, 2015

Montana State Fund. Review of Rates Effective July 1, 2015 & Review of Claim Liability as of June 30, 2015 Montana State Fund Review of Rates Effective July 1, 2015 & Review of Claim Liability as of June 30, 2015 Firm: 1336 SW 146th Ct. Miami, FL 33184 Tel. (305) 273-1589 Contact: Aguedo (Bob) M. Ingco, FCAS,

More information

Measurement of Incurred but Unreported Deaths in Life Settlements Donald F. Behan

Measurement of Incurred but Unreported Deaths in Life Settlements Donald F. Behan Measurement of Incurred but Unreported Deaths in Life Settlements Donald F. Behan ABSTRACT The traditional application of incurred but unreported insurance claims adds unreported claims to the reported

More information

PROCEEDINGS November 13,14,15,16,1994

PROCEEDINGS November 13,14,15,16,1994 Volume LXXXI, Part 2 No. 155 PROCEEDINGS November 13,14,15,16,1994 EXTENDED SERVICE CONTRACTS ROGER M. HAYNE Abstract Automobile extended service contracts (ESCs) have been in existence for many years.

More information

GLOSSARY OF SELECTED INSURANCE AND RELATED FINANCIAL TERMS

GLOSSARY OF SELECTED INSURANCE AND RELATED FINANCIAL TERMS In an effort to help our investors and other interested parties better understand our regular SEC reports and other disclosures, we are providing a Glossary of Selected Insurance Terms. Most of the definitions

More information

Using Best Practices to Determine a Best Reserve Estimate

Using Best Practices to Determine a Best Reserve Estimate Using Best Practices to Determine a Best Reserve Estimate Paul J. Struzzieri, FCAS Paul R. Hussian, FCAS Milliman & Robertson, Inc. Two Pennsylvania Plaza Suite 1552 New York, NY 10121 (212) 279-7166 Using

More information

Dumfries Mutual Insurance Company Financial Statements For the year ended December 31, 2010

Dumfries Mutual Insurance Company Financial Statements For the year ended December 31, 2010 Dumfries Mutual Insurance Company Financial Statements For the year ended December 31, 2010 Contents Independent Auditors' Report 2 Financial Statements Balance Sheet 3 Statement of Operations and Unappropriated

More information

Determining a reasonable range of loss reserves, required

Determining a reasonable range of loss reserves, required C OVER S TORY By R USTY K UEHN Medical Malpractice Loss Reserves: Risk and Reasonability On March 1 of every calendar year, property/casualty insurance companies file a Statement of Actuarial Opinion (SAO),

More information

Technical Notes for Automobile Insurance Rate and Risk Classification Filings

Technical Notes for Automobile Insurance Rate and Risk Classification Filings Technical Notes for Automobile Insurance Rate and Risk Classification Filings Issued with Bulletin No. A-12/01 Property & Casualty - Auto Rate and Risk Classification Filings A. Introduction All insurers

More information

Liberty Mutual Insurance Reports Second Quarter 2013 Results

Liberty Mutual Insurance Reports Second Quarter 2013 Results Liberty Mutual Insurance Reports Second Quarter 2013 Results BOSTON, Mass., August 6, 2013 Liberty Mutual Holding Company Inc. and its subsidiaries (collectively LMHC or the Company ) today reported net

More information

Improving Actuarial Reserve Analysis by Including Individual Claim Level Predictive Analytics. 2013 CLRS Presentation Chris Gross

Improving Actuarial Reserve Analysis by Including Individual Claim Level Predictive Analytics. 2013 CLRS Presentation Chris Gross Improving Actuarial Reserve Analysis by Including Individual Claim Level Predictive Analytics 2013 CLRS Presentation Chris Gross 1 Predictive Modeling in Reserve Analysis It s all predictive modeling isn

More information

Sup. Inst. 17-1 LONG-TERM CARE INSURANCE EXPERIENCE REPORTING FORMS

Sup. Inst. 17-1 LONG-TERM CARE INSURANCE EXPERIENCE REPORTING FORMS Sup. Inst. 17-1 LONG-TERM CARE INSURANCE EXPERIENCE REPORTING FORMS These Reporting Forms must be filed with the NAIC by April 1 each year. The purpose of the Long-Term Care Insurance Experience Reporting

More information

Basics of Reinsurance Pricing

Basics of Reinsurance Pricing Basics of Reinsurance Pricing Actuarial Study Note David R. Clark, FCAS First Version 1996 Revised 2014 Copyright, David R. Clark, 2014 Basics of Reinsurance Pricing Introduction Like primary insurance,

More information

Actuarial Methods in Health Insurance Provisioning, Pricing and Forecasting

Actuarial Methods in Health Insurance Provisioning, Pricing and Forecasting Actuarial Methods in Health Insurance Provisioning, Pricing and Forecasting Prepared by Peter Lurie Presented to the Institute of Actuaries of Australia Biennial Convention 23-26 September 2007 Christchurch,

More information

VERMONT DEPARTMENT OF BANKING, INSURANCE, SECURITIES, AND HEALTH CARE ADMINISTRATION

VERMONT DEPARTMENT OF BANKING, INSURANCE, SECURITIES, AND HEALTH CARE ADMINISTRATION VERMONT DEPARTMENT OF BANKING, INSURANCE, SECURITIES, AND HEALTH CARE ADMINISTRATION TECHNIQUES TO STABILIZE VERMONT WORKERS COMPENSATION PREMIUM COSTS AND MINIMIZE THE IMPACT OF LARGE CLAIMS Prepared

More information

IAG 1 INDUSTRY ACCOUNTING GUIDELINE 1 ACCOUNTING FOR GENERAL INSURANCE BUSINESS. Part 1 - Introduction

IAG 1 INDUSTRY ACCOUNTING GUIDELINE 1 ACCOUNTING FOR GENERAL INSURANCE BUSINESS. Part 1 - Introduction IAG 1 INDUSTRY ACCOUNTING GUIDELINE 1 ACCOUNTING FOR GENERAL INSURANCE BUSINESS (Issued June 1993; revised July 2000 and December 2001) This Guideline sets out recommendations, intended to represent best

More information

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ABCDEFGHIJ THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. GEORGIA RETROSPECTIVE RATING PLAN PREMIUM ENDORSEMENT WRAP-UP CONSTRUCTION PROJECT - MULTIPLE LINES Policy Number: Effective Date:

More information

MINNESOTA AGGREGATE FINANCIAL DATA REPORTING GUIDEBOOK. Annual Calls for Experience Valued as of December 31, 2015

MINNESOTA AGGREGATE FINANCIAL DATA REPORTING GUIDEBOOK. Annual Calls for Experience Valued as of December 31, 2015 MINNESOTA AGGREGATE FINANCIAL DATA REPORTING GUIDEBOOK Annual Calls for Experience Valued as of December 31, 2015 11/5/2015 ANNUAL CALLS FOR EXPERIENCE As the licensed Data Service Organization in Minnesota,

More information

GLOSSARY OF TERMS - GENERAL INSURANCE

GLOSSARY OF TERMS - GENERAL INSURANCE GLOSSARY OF TERMS - GENERAL INSURANCE Prepared by David Forfar, MA, FFA with the assistance of David Raymont, Librarian of Institute of Actuaries, London. Version 10/1/2002 1-year accounting :- a basis

More information

IASB/FASB Meeting Week beginning 14 February 2011. Discounting Non-life Contract Liabilities

IASB/FASB Meeting Week beginning 14 February 2011. Discounting Non-life Contract Liabilities IASB/FASB Meeting Week beginning 14 February 2011 IASB Agenda reference 3E FASB Agenda Staff Paper reference 58E IASB Contact(s) Matthias Zeitler mzeitler@iasb.org +44 (0)20 7246 6453 FASB Contact(s) Shayne

More information

Basic Insurance Accounting Selected Topics

Basic Insurance Accounting Selected Topics By Ralph S. Blanchard III, FCAS, MAAA 1 July 2008 CAS Study Note Author s Change to This Edition This edition of the study note is the same as the June 2007 edition except for the following change to the

More information

AN INTRODUCTION TO PREMIUM TREND

AN INTRODUCTION TO PREMIUM TREND AN INTRODUCTION TO PREMIUM TREND Burt D. Jones * February, 2002 Acknowledgement I would like to acknowledge the valuable assistance of Catherine Taylor, who was instrumental in the development of this

More information

Final. Final Standards Part 2000 Insurance to conform to the adoption of International Financial Reporting Standards (IFRS) as Canadian GAAP

Final. Final Standards Part 2000 Insurance to conform to the adoption of International Financial Reporting Standards (IFRS) as Canadian GAAP Final Final Standards Part 2000 Insurance to conform to the adoption of International Financial Reporting Standards (IFRS) as Canadian GAAP Actuarial Standards Board November 2009 Document 209117 Ce document

More information

WORKERS COMPENSATION RATEMAKING PROCESSES OF THE NATIONAL COUNCIL ON COMPENSATION INSURANCE, INC.

WORKERS COMPENSATION RATEMAKING PROCESSES OF THE NATIONAL COUNCIL ON COMPENSATION INSURANCE, INC. WORKERS COMPENSATION RATEMAKING PROCESSES OF THE NATIONAL COUNCIL ON COMPENSATION INSURANCE, INC. JANUARY 2014 CONTENTS 1. Introduction... 1 Scope... 1 Overview of the NCCI Ratemaking Methodology... 2

More information

Guideline. Source of Earnings Disclosure (Life Insurance Companies) No: D-9 Date: December 2004 Revised: July 2010

Guideline. Source of Earnings Disclosure (Life Insurance Companies) No: D-9 Date: December 2004 Revised: July 2010 Guideline Subject: Category: (Life Insurance Companies) Accounting No: D-9 Date: December 2004 Revised: July 2010 This Guideline, which applies to life insurance companies and life insurance holding companies

More information

The Insurance Regulatory and Development Authority (General Insurance - Claims Reserving) Regulation, 2013.

The Insurance Regulatory and Development Authority (General Insurance - Claims Reserving) Regulation, 2013. The Insurance Regulatory and Development Authority (General Insurance - Claims Reserving) Regulation, 2013. F. No. IRDA/Reg/./2013 dated.. - In exercise of the powers conferred under Section 114A of the

More information

Solvency II: Risk Margins and Technical Provisions Peter England

Solvency II: Risk Margins and Technical Provisions Peter England Solvency II: Risk Margins and Technical Provisions Peter England GIRO conference and exhibition 12-15 October 2010 2010 The Actuarial Profession www.actuaries.org.uk Agenda The traditional actuarial view

More information

News from The Chubb Corporation

News from The Chubb Corporation News from The Chubb Corporation The Chubb Corporation 15 Mountain View Road P.O. Box 1615 Warren, New Jersey 07061-1615 Telephone: 908-903-2000 Chubb Reports Fourth Quarter Net Income per Share of $2.35;

More information

Accounting for (Non-Life) Insurance in Australia

Accounting for (Non-Life) Insurance in Australia IASB MEETING, APRIL 2005 OBSERVER NOTE (Agenda Item 3a) Accounting for (Non-Life) Insurance in Australia Tony Coleman & Andries Terblanche Presentation to IASB 19 April 2005 Agenda Australian Non-Life

More information

News from The Chubb Corporation

News from The Chubb Corporation News from The Chubb Corporation The Chubb Corporation 15 Mountain View Road P.O. Box 1615 Warren, New Jersey 07061-1615 Telephone: 908-903-2000 FOR IMMEDIATE RELEASE Chubb Reports Second Quarter Net Income

More information

Chapter 9 Experience rating

Chapter 9 Experience rating 0 INTRODUCTION 1 Chapter 9 Experience rating 0 Introduction The rating process is the process of deciding on an appropriate level of premium for a particular class of insurance business. The contents of

More information

GLOSSARY. A contract that provides for periodic payments to an annuitant for a specified period of time, often until the annuitant s death.

GLOSSARY. A contract that provides for periodic payments to an annuitant for a specified period of time, often until the annuitant s death. The glossary contains explanations of certain terms and definitions used in this prospectus in connection with us and our business. The terms and their meanings may not correspond to standard industry

More information

New Frontiers A ROUND- UP OF EMERGING RESERVING TECHNIQUES DEBARSHI CHATTERJEE, FIA FIAI

New Frontiers A ROUND- UP OF EMERGING RESERVING TECHNIQUES DEBARSHI CHATTERJEE, FIA FIAI New Frontiers A ROUND- UP OF EMERGING RESERVING TECHNIQUES DEBARSHI CHATTERJEE, FIA FIAI Agenda Triangle-free Methods Simple Approach for Separate Estimation of Pure IBNR and IBNER Triangle-Free Reserving

More information

VOL. XLVIII, Part I No. 89 PROCEEDINGS. May 3-5, 1961 RESERVES FOR REOPENED CLAIMS ON WORKMEN'S COMPENSATION INTRODUCTION

VOL. XLVIII, Part I No. 89 PROCEEDINGS. May 3-5, 1961 RESERVES FOR REOPENED CLAIMS ON WORKMEN'S COMPENSATION INTRODUCTION VOL. XLVIII, Part I No. 89 PROCEEDINGS May 3-5, 1961 RESERVES FOR REOPENED CLAIMS ON WORKMEN'S COMPENSATION BY RAFAL J. BALCAREK INTRODUCTION Reopening of closed claims occurs in most lines of insurance,

More information

DETERMINING ULTIMATE CLAIM LIABILITIES FOR HEALTH INSURANCE COVERAGES

DETERMINING ULTIMATE CLAIM LIABILITIES FOR HEALTH INSURANCE COVERAGES 200 DETERMINING ULTIMATE CLAIM LIABILITIES FOR HEALTH INSURANCE COVERAGES EMIL J. STRUG I. INTRODUCTION The purpose of this paper is to add another chapter to the fund of knowledge being accumulated on

More information

"Insurance Services Office, Inc. Copyright"

Insurance Services Office, Inc. Copyright IL 09 19 10 93 "Insurance Services Office, Inc. Copyright" This form has been promulgated by the Virginia Corporation Commission for use by all licensed insurers in the Commonwealth issuing policies for

More information

Financial Reporting of General Insurance Activities

Financial Reporting of General Insurance Activities Accounting Standard AASB 1023 November 1996 Financial Reporting of General Insurance Activities Issued by the Australian Accounting Standards Board Obtaining a Copy of this Accounting Standard Copies of

More information

Static Pool Analysis: Evaluation of Loan Data and Projections of Performance March 2006

Static Pool Analysis: Evaluation of Loan Data and Projections of Performance March 2006 Static Pool Analysis: Evaluation of Loan Data and Projections of Performance March 2006 Introduction This whitepaper provides examiners with a discussion on measuring and predicting the effect of vehicle

More information

NST.06 - Non-life Insurance Claims Information - Detailed split by Distribution Channel and Claims Type.

NST.06 - Non-life Insurance Claims Information - Detailed split by Distribution Channel and Claims Type. NST.06 - Non-life Insurance Claims Information - Detailed split by Distribution Channel and Claims Type. The first column of the next table identifies the items to be reported by identifying the columns

More information

Overall Level of Home Insurance Rates

Overall Level of Home Insurance Rates Overall Level of Home Insurance Rates University of Waterloo Actuarial Projects Competition Michael Vezina & Frédérick Guillot, Co-operators February 12 th, 2015 Agenda Who are we? Case Study Details?

More information

KINGSTONE COMPANIES, INC.

KINGSTONE COMPANIES, INC. SECURITIES & EXCHANGE COMMISSION EDGAR FILING KINGSTONE COMPANIES, INC. Form: 10-Q Date Filed: 2015-11-12 Corporate Issuer CIK: 33992 Copyright 2015, Issuer Direct Corporation. All Right Reserved. Distribution

More information

Halwell Mutual Insurance Company Financial Statements For the year ended December 31, 2014

Halwell Mutual Insurance Company Financial Statements For the year ended December 31, 2014 Financial Statements For the year ended Contents Independent Auditor's Report 2 Financial Statements Statement of Financial Position 3 Statement of Comprehensive Income 4 Statement of Members Surplus 5

More information

First Quarter Highlights

First Quarter Highlights The Hanover Reports First Quarter Net Income of $1.46 per Diluted Share; Operating Income 1 of $1.32 per Diluted Share; Combined Ratio of 96.1% Including Catastrophe Impact of 2.0 points WORCESTER, Mass.,

More information

2 COMMENCEMENT DATE 5 3 DEFINITIONS 5 4 MATERIALITY 8. 5 DOCUMENTATION 9 5.1 Requirement for a Report 9 5.2 Content of a Report 9

2 COMMENCEMENT DATE 5 3 DEFINITIONS 5 4 MATERIALITY 8. 5 DOCUMENTATION 9 5.1 Requirement for a Report 9 5.2 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 information

Treatment of technical provisions under Solvency II

Treatment of technical provisions under Solvency II Treatment of technical provisions under Solvency II Quantitative methods, qualitative requirements and disclosure obligations Authors Martin Brosemer Dr. Susanne Lepschi Dr. Katja Lord Contact solvency-solutions@munichre.com

More information

Comparison of Terms Used in Non-Life Insurance in the US and UK

Comparison of Terms Used in Non-Life Insurance in the US and UK 1999 General Insurance Convention Comparison of Terms Used in Non-Life Insurance in the US and UK Kevin Armstrong 225 COMPARISON OF TERMS USED IN NON-LIFE INSURANCE IN THE US AND UK KEVIN ARMSTRONG The

More information

News from The Chubb Corporation

News from The Chubb Corporation News from The Chubb Corporation The Chubb Corporation 15 Mountain View Road P.O. Box 1615 Warren, New Jersey 07061-1615 Telephone: 908-903-2000 FOR IMMEDIATE RELEASE Chubb Reports 4th Quarter Net Income

More information

Getting More From Your Actuarial Analysis

Getting More From Your Actuarial Analysis Getting More From Your Actuarial Analysis For Companies Retaining Property/Casualty Insurance Risks PwC 1 Introduction Many companies retain property/casualty insurance (P&C) risks, such as workers' compensation,

More information

Pricing Alternative forms of Commercial Insurance cover

Pricing Alternative forms of Commercial Insurance cover Pricing Alternative forms of Commercial Insurance cover Prepared by Andrew Harford Presented to the Institute of Actuaries of Australia Biennial Convention 23-26 September 2007 Christchurch, New Zealand

More information

Solution. The premium is simply the Loss Cost grossed up for expenses: $382.78 1 0.24 $503.66.

Solution. The premium is simply the Loss Cost grossed up for expenses: $382.78 1 0.24 $503.66. Exercise 1. In a PC insurance company, the estimated average Loss Cost per exposure unit for 2009 is 382.78 and the Expense Ratio for 2009 is determined to be 24%. Find the premium to be charged for a

More information

RESERVING FOR GENERAL INSURANCE LIABILITIES- ADEQUACY OF RESERVES OF INDIAN NON-LIFE INSURERS

RESERVING FOR GENERAL INSURANCE LIABILITIES- ADEQUACY OF RESERVES OF INDIAN NON-LIFE INSURERS RESERVING FOR GENERAL INSURANCE LIABILITIES- ADEQUACY OF RESERVES OF INDIAN NON-LIFE INSURERS Anurag Rastogi H.Ansari National Insurance Academy, Pune Insurance is People-centric business. We deal with

More information

The Next Generation of the Minimum Capital Test - A Canadian Regulatory Capital Framework

The Next Generation of the Minimum Capital Test - A Canadian Regulatory Capital Framework CIA Annual General Meeting The Next Generation of the Minimum Capital Test - A Canadian Regulatory Capital Framework June 21, 2013 Judith Roberge, Director, Capital Division Chris Townsend, Managing Director,

More information

MEDICAL MALPRACTICE CLOSED CLAIM DATA COLLECTION UNDER CONNECTICUT PUBLIC ACT 05-275

MEDICAL MALPRACTICE CLOSED CLAIM DATA COLLECTION UNDER CONNECTICUT PUBLIC ACT 05-275 MEDICAL MALPRACTICE CLOSED CLAIM DATA COLLECTION UNDER CONNECTICUT PUBLIC ACT 05-275 Introduction: Public Act 05-275 (the Act ) requires Medical Malpractice insurance providers to report closed claims

More information

UNIVERSITY OF FLORIDA SELF-INSURANCE PROGRAM AND HEALTHCARE EDUCATION INSURANCE COMPANY COMBINING FINANCIAL STATEMENTS JUNE 30, 2013

UNIVERSITY OF FLORIDA SELF-INSURANCE PROGRAM AND HEALTHCARE EDUCATION INSURANCE COMPANY COMBINING FINANCIAL STATEMENTS JUNE 30, 2013 UNIVERSITY OF FLORIDA SELF-INSURANCE PROGRAM AND HEALTHCARE COMBINING FINANCIAL STATEMENTS UNIVERSITY OF FLORIDA SELF-INSURANCE PROGRAM AND HEALTHCARE TABLE OF CONTENTS Page(s) Independent Auditors Report

More information

Aon Benfield Analytics US P&C Industry Statutory Reserve Study

Aon Benfield Analytics US P&C Industry Statutory Reserve Study Aon Benfield Analytics US P&C Industry Statutory Reserve Study Based on Schedule P data as of December 31, 2010 For Public Distribution June 15, 2011 Disclosure Section 17(b) of the Securities Act of 1933

More information

Development Period 1 2 3 4 5 6 7 8 9 Observed Payments

Development Period 1 2 3 4 5 6 7 8 9 Observed Payments Pricing and reserving in the general insurance industry Solutions developed in The SAS System John Hansen & Christian Larsen, Larsen & Partners Ltd 1. Introduction The two business solutions presented

More information