Session 25 L, Introduction to General Insurance Ratemaking & Reserving: An Integrated Look. Moderator: W. Scott Lennox, FSA, FCAS, FCIA
|
|
- Evangeline Anastasia Lamb
- 8 years ago
- Views:
Transcription
1 Session 25 L, Introduction to General Insurance Ratemaking & Reserving: An Integrated Look Moderator: W. Scott Lennox, FSA, FCAS, FCIA Presenter: Houston Cheng, FCAS, FCIA
2 Society of Actuaries 2013 Annual Meeting & Exhibit Introduction to General Insurance Ratemaking and Reserving An Integrated Look Houston Cheng, FCAS, FCIA (416) Presentation Date: October 21, 2013 Agenda Introduction Technical key concepts Estimating ultimate claims Reserving Ratemaking 1 1
3 Introduction Introduction Industry Snapshot 2012 U.S. Property & Casualty Industry Direct Written Premiums Total written: $512.3 billion 7% 7% 8% 9% 5% 3% 21% Private Auto Liability Homeowners Private Auto Physical Damage Liability Workers' Comp Other Property 15% Other Commercial Multi Peril Commercial Auto Financial Products 13% 12% Source: A.M. Best's Global Insurance Database 3 2
4 Introduction Major Lines of Business Fire Multi Peril Crop Federal Flood Farmowners Multi Peril Homeowners Multi Peril Commercial Multi Peril Mortgage Guaranty Ocean Marine Inland Marine Financial Guaranty Medical Professional Liability Earthquake Accident and Health Workers Compensation Other Liability Products Liability Private Auto Liability Commercial Auto Liability Private Auto Physical Damage Commercial Auto Physical Damage Aircraft Fidelity Surety Burglary & Theft Boiler & Machinery Credit Warranty 4 Introduction Characteristics of General Insurance Most lines of business are short duration Investment income not as significant as non-gi products Important to understand frequency and severity of claims Nature of any particular claim usually unknown uncertainties include: Actual claim payment (including re-opening of a claim) Amount of claim payment Number of payments for a claim Timing of claim payment 5 3
5 Introduction Characteristics of General Insurance (Continued) Methodology: Underlying processes often not well understood by non-actuaries Methods historically have been ad-hoc Average as well as distribution of outcomes important Need to communicate uncertainty Modern approaches beginning to incorporate stochastic approaches 6 Technical Key Concepts 4
6 Technical Key Concepts Ultimate claims Data Credibility Trend 8 Technical Key Concepts Ultimate Claims Definition: the value of claims beyond which no other claims payments are expected To derive an estimate of ultimate claims, actuaries look years into the future to determine an estimated amount the insurer will pay when all claims have been closed and settled and no further payments are anticipated Ultimate claims consist of 4 components: Claim payments Case estimates for claims that have been reported Development on case outstanding (incurred but not enough reported IBNER) Claims that have been incurred but not yet reported (incurred buy not yet reported IBNYR) IBNR = IBNER + IBNYR Ultimate claims = cumulative claim payments + case estimates + IBNR 9 5
7 Technical Key Concepts Ultimate Claims (Continued) Why estimates of ultimate claims are needed: Final cost of goods sold is not known until long into the future Estimates of ultimate values become critical in the management of GI enterprises: Financial reporting Pricing Financial condition analysis Planning Valuations, including merger and acquisition analyses 10 Technical Key Concepts Data Typical data: Claim Amounts: paid, case estimates, reported, etc. Counts: Closed, open, reported Aggregation by calendar, accident, policy, or report year Line of business Gross, net and/or ceded of reinsurance Exposure Premiums, number of policies, number of vehicles, payroll, sales, etc. Expense Loss adjustment, general, underwriting, etc. 11 6
8 Technical Key Concepts Credibility GI actuaries use credibility procedures to improve estimates. Through credibility procedures, data from two (or more) sets of experience are blended together with the goal of improving the overall results of the actuarial work. Examples of actual experience blended with a complement of credibility: An insurer s experience with industry experience A subsidiary company s experience with experience from a larger, related company Experience in one territory within a state with statewide experience Experience in one state with regional or countrywide experience Experience in one line of business with similar lines of business Experience in one classification with all classifications Experience in one deductible or limit layer with experience in similar deductible or limit layers 12 Technical Key Concepts Trend Consider how changes over time affect items such as claim costs, claim severities, claim frequencies, expenses, exposures, and premiums Reflect the dynamic forces that exist in our society economic, societal and demographic that produce measurable changes in insurance experience over time Time periods for trend: Experience: historical Forecast: future 13 7
9 Estimating Ultimate Claims Estimating Ultimate Claims Life of a claim: When a claim is reported, insurance adjuster assigns initial estimate of the amount that will ultimately be paid by the insurer (known as a case reserve) Case reserve at any point in time is the estimated amount still outstanding to be paid as of that date to settle the claim (i.e., close the claim) Total amount of claim at any date (i.e., reported value) = amount paid to date + amount outstanding (i.e., case reserve) 15 8
10 Estimating Ultimate Claims Life of a Claim (Auto Collision Example) $2,500 $2,000 $1,500 Case Reserve $1,000 Payment $500 $0 12/15/ /22/ /31/2010 1/5/2011 1/15/ Estimating Ultimate Claims Life of a Claim (General Liability Example) $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $230,000 $165, $150, $150, ,000 $2 $325,000 Case Reserve Payment $0 $20,
11 Estimating Ultimate Claims Data Organization 12/31/ /31/ /31/ /31/2013 Paid 20, , , ,000 Case Reserve 230, , , Reported 250, , , ,000 Reported Age (Months) Accident Year , , , , Estimating Ultimate Claims Triangle Example Reported Age (Months) Accident Year , , , , , , , , , , , , , , ,000 Accident Year <= Age-to-age Average Selected
12 Estimating Ultimate Claims Triangle Example (Continued) Reported Age (Months) Accident Year , , , , , , , , , , , , , , , , , , , , , , , , , Selected Estimating Ultimate Claims Triangle Example (Continued) Reported Age (Months) Accident Year , , , , , , , , , , , , , , , , , , , , , , , , ,431 At 12/31/2013 Accident Year Reported Ultimate , , , , , , , , , ,
13 Estimating Ultimate Claims Methods Example highlighted: Development method Other methods: Expected Bornhuetter Ferguson Cape Cod Berquist-Sherman 22 Estimating Ultimate Claims Expected Method At 12/31/2013 Accident Year Earned Premium Reported Claims Population Claim Ratio Frequency Severity , ,196 5,000 60% 1.25% 5, , ,000 5,050 60% 1.25% 5, , ,035 4,949 60% 1.25% 5, , ,200 5,048 60% 1.25% 5, , ,000 4,998 60% 1.25% 5,412 Accident Year Ultimate at 12/31/2013 Claim Ratio Freq-Sev Selected , , , , , , , , , , , , , , ,
14 Estimating Ultimate Claims Bornhuetter Ferguson Accident Year Reported at 12/31/2013 Cumulative Dev. Factor Percent Unreported Ultimate at 12/31/2013 Expected BF , % 312, , , % 320, , , % 323, , , % 332, , , % 337, , Estimating Ultimate Claims Select Ultimate Accident Year Reported at 12/31/2013 Ultimate at 12/31/2013 Development Expected BF Selected , , , , , , , , , , , , , , , , , , , , , , , , ,
15 Reserving Reserving Financial Statement Recall that: Ultimate claims = cumulative claim payments + case estimates + IBNR Note: Claim liabilities = case estimates + IBNR or Claim liabilities = ultimate claims cumulative claim payments At 12/31/2013 Accident Year Paid Claims Case Estimates Reported Claims Selected Ultimate IBNR Unpaid Claims , , , , , , ,035 75, , , , , , , ,320 31, , , , , ,905 97, ,905 Total 447, , ,
16 Reserving Life Insurance verses General Insurance Life insurance reserves: Policy reserve = PV[expected future benefits] PV[expected future net premiums] Specific reserve for all policies Financial statement reserves = sum of all policy reserves Policy reserve increases toward face amount (i.e., gets closer to paying the death benefit) General insurance reserves: Individual reserve = case reserve Case reserve only incurred if claim is reported (i.e., not all individual policies have reserve) Financial statement reserves = sum of all case reserves + IBNR provision (i.e., bulk reserve) Case reserve typically decreases with each duration (i.e. gets closer to settling the claim and completing the payment) 28 Ratemaking 15
17 Ratemaking Objectives Essential objectives: Cover expected losses and expenses Produce rates that make adequate provision for contingencies Encourage loss control Satisfy rate regulators In general terms, the basic requirements of the regulatory agencies are that rates must be adequate, not excessive, and not unfairly discriminating Non-essential but desirable objectives: Produce rates that are reasonably stable Produce rates that are reasonably responsive to changes Be simple and easy to understand 30 Ratemaking Basics Claim frequency Frequency (i.e., probability) of an insured having a claim Claim severity Average claim size Claim cost Expected value of the incurred losses per unit of exposure i.e., pure premium [claim frequency] x [claim severity] 31 16
18 Ratemaking Pure Premium Accident Year Reported Claims Excess Claims Cumulative Dev. Factor Trend Factor ULAE Large Loss Loading , , , , , , Accident Year Adjusted Ult. Claims Population Pure Premium ,062 5, ,927 5, ,611 4, ,213 5, ,462 4, Total 1,959,276 25, Ratemaking Premium Calculation In general: Premium = expected claim + underwriting expenses + profit Assume: P = premium C = expected claim V = underwriting expenses as percent of premium = 15% Q = profit as percent of premium = 10% P C V P Q P C P 1 V Q 78.2 P
19 Ratemaking Other Considerations Adjust historic premiums to current rate levels Trend historic premiums to reflect change in mix of business Overall rate adequacy Rate adequacy by risk classification Credibility of data Competition Actuarially fair premium vs. competitive premium Regulatory constraints Operational constraints Underwriting cycle 34 Ratemaking Classification Simple one-way analysis Classical linear analysis Minimum bias procedures Generalized linear models (GLMs) 35 18
20 Ratemaking Considerations (Auto) Safety and theft statistics for the area you live in Whether you commute to work Personal or commercial use The year, make and model of your vehicle How many tickets you have had, including past at-fault insurance claims How many years you have been driving Various discounts How much coverage you wish to purchase and deductibles you choose 36 Ratemaking Considerations (Home) Building material and construction Replacement cost Whether the area is prone to flooding or wind damage Neighbourhood s crime rate Special collections or valuable items in the home Proximity to a fire station Applicable discounts and the level of deductible 37 19
21 Questions? Thank you Contact Details: Houston Cheng, FCAS, FCIA (416)
22 The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. The KPMG name, logo and cutting through complexity are registered trademarks or trademarks of KPMG International. 21
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 informationABC 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 informationIncorporated/Organized 06/09/1988 Commenced Business 12/21/1988. (Street and Number) Tamarac, FL 33321-6405, 954-623-6700
PROPERTY AND CASUALTY COMPANIES - ASSOCIATION EDITION ANNUAL STATEMENT FOR THE YEAR ENDED DECEMBER, 00 OF THE CONDITION AND AFFAIRS OF THE Seminole Casualty Insurance Company NAIC Group Code 0000 NAIC
More informationEducational 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 informationNumber of Insurance Companies. U.S. Premiums by NAIC Financial Statement Type. U.S. Premiums by IDRR Premium Type. Insurance Department Data
The mission of the National Association of Commissioners (NAIC) is to assist state insurance regulators, individually and collectively, in serving the public interest and achieving the following fundamental
More informationIASB Educational Session Non-Life Claims Liability
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
More informationNAIC Group Code 0008 NAIC Company Code 00086. Combined Statement Contact LYNN CIRRINCIONE, 847-402-3029 (Area Code) (Telephone Number)
PROPERTY AND CASUALTY COMPANIES - ASSOCIATION EDITION COMBINED ANNUAL STATEMENT FOR THE YEAR ENDED DECEMBER, 00 OF THE CONDITION AND AFFAIRS OF THE ALLSTATE INSURANCE GROUP its affiliated property casualty
More informationNumber of Insurance Companies. U.S. Premiums by NAIC Financial Statement Type. U.S. Premiums by IDRR Premium Type. Insurance Department Data
The mission of the National Association of Commissioners (NAIC) is to assist state insurance regulators, individually and collectively, in serving the public interest and achieving the following fundamental
More informationNumber of Insurance Companies. U.S. Premiums by NAIC Financial Statement Type. U.S. Premiums by IDRR Premium Type. Insurance Department Data
The mission of the National Association of Commissioners (NAIC) is to assist state insurance regulators, individually and collectively, in serving the public interest and achieving the following fundamental
More informationNumber of Insurance Companies. U.S. Premiums by NAIC Financial Statement Type. U.S. Premiums by IDRR Premium Type. Insurance Department Data
The mission of the National Association of Commissioners (NAIC) is to assist state insurance regulators, individually and collectively, in serving the public interest and achieving the following fundamental
More informationHow To Understand The Insurance Market In The United States
The mission of the National Association of Commissioners (NAIC) is to assist state insurance regulators, individually and collectively, in serving the public interest and achieving the following fundamental
More informationNumber of Insurance Companies. U.S. Premiums by NAIC Financial Statement Type. U.S. Premiums by IDRR Premium Type. Insurance Department Data
The mission of the National Association of Commissioners (NAIC) is to assist state insurance regulators, individually and collectively, in serving the public interest and achieving the following fundamental
More informationNumber of Insurance Companies. U.S. Premiums by NAIC Financial Statement Type. U.S. Premiums by IDRR Premium Type. Insurance Department Data
The mission of the National Association of Commissioners (NAIC) is to assist state insurance regulators, individually and collectively, in serving the public interest and achieving the following fundamental
More informationNumber of Insurance Companies. U.S. Premiums by NAIC Financial Statement Type. U.S. Premiums by IDRR Premium Type. Insurance Department Data
The mission of the National Association of Commissioners (NAIC) is to assist state insurance regulators, individually and collectively, in serving the public interest and achieving the following fundamental
More informationNumber of Insurance Companies. U.S. Premiums by NAIC Financial Statement Type. U.S. Premiums by IDRR Premium Type. Insurance Department Data
The mission of the National Association of Commissioners (NAIC) is to assist state insurance regulators, individually and collectively, in serving the public interest and achieving the following fundamental
More informationNumber of Insurance Companies. U.S. Premiums by NAIC Financial Statement Type. U.S. Premiums by IDRR Premium Type. Insurance Department Data
The mission of the National Association of Commissioners (NAIC) is to assist state insurance regulators, individually and collectively, in serving the public interest and achieving the following fundamental
More informationNumber of Insurance Companies. U.S. Premiums by NAIC Financial Statement Type. U.S. Premiums by IDRR Premium Type. Insurance Department Data
The mission of the National Association of Commissioners (NAIC) is to assist state insurance regulators, individually and collectively, in serving the public interest and achieving the following fundamental
More informationNumber of Insurance Companies. U.S. Premiums by NAIC Financial Statement Type. U.S. Premiums by IDRR Premium Type. Insurance Department Data
The mission of the National Association of Commissioners (NAIC) is to assist state insurance regulators, individually and collectively, in serving the public interest and achieving the following fundamental
More informationNumber of Insurance Companies. U.S. Premiums by NAIC Financial Statement Type. U.S. Premiums by IDRR Premium Type. Insurance Department Data
The mission of the National Association of Commissioners (NAIC) is to assist state insurance regulators, individually and collectively, in serving the public interest and achieving the following fundamental
More informationNumber of Insurance Companies. U.S. Premiums by NAIC Financial Statement Type. U.S. Premiums by IDRR Premium Type. Insurance Department Data
The mission of the National Association of Commissioners (NAIC) is to assist state insurance regulators, individually and collectively, in serving the public interest and achieving the following fundamental
More informationNumber of Insurance Companies. U.S. Premiums by NAIC Financial Statement Type. U.S. Premiums by IDRR Premium Type. Insurance Department Data
The mission of the National Association of Commissioners (NAIC) is to assist state insurance regulators, individually and collectively, in serving the public interest and achieving the following fundamental
More informationAntitrust 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 informationNumber of Insurance Companies. U.S. Premiums by NAIC Financial Statement Type. U.S. Premiums by IDRR Premium Type. Insurance Department Data
The mission of the National Association of Commissioners (NAIC) is to assist state insurance regulators, individually and collectively, in serving the public interest and achieving the following fundamental
More informationNumber of Insurance Companies. U.S. Premiums by NAIC Financial Statement Type. U.S. Premiums by IDRR Premium Type. Insurance Department Data
The mission of the National Association of Commissioners (NAIC) is to assist state insurance regulators, individually and collectively, in serving the public interest and achieving the following fundamental
More informationHow To Calculate The Annual Rate Of Return On A Car In Alberta
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 informationSECTION III. Definitions have been included in these instructions to assist insurers with the preparation of their filings.
SECTION III Definitions have been included in these instructions to assist insurers with the preparation of their filings. This section is not a complete set of insurance and insurance accounting definitions
More informationSchedule A TERRORISM RISK INSURANCE PROGRAM
Control Number (Treasury use) Schedule A TERRORISM RISK INSURANCE PROGRAM DECLARATION OF DIRECT EARNED PREMIUM AND CALCULATION OF INSURER DEDUCTIBLE UNDER TERRORISM RISK INSURANCE ACT (TRIA) Insurer or
More informationNAIC Group Code 0212 NAIC Company Code 02127. Combined Statement Contact Colleen M Zitt, 847-413-5048 (Area Code) (Telephone Number)
PROPERTY AND CASUALTY COMPANIES - ASSOCIATION EDITION COMBINED ANNUAL STATEMENT FOR THE YEAR ENDED DECEMBER, 0 OF THE CONDITION AND AFFAIRS OF THE Zurich American Insurance Company Affiliates its affiliated
More informationModelling 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 informationIntermediate 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 informationInsurance Risk 101. Pat Teufel, FSA, MAAA Timothy J. Tongson, FSA, MAAA James E. Rech, MBA, ACAS, ASA, MAAA July 9, 2001 RHOB 2220
Insurance Risk 101 Pat Teufel, FSA, MAAA Timothy J. Tongson, FSA, MAAA James E. Rech, MBA, ACAS, ASA, MAAA July 9, 2001 RHOB 2220 Insurance Risk 101 1 Life Insurance Risk 101 Timothy J. Tongson, FSA, MAAA
More informationGLOSSARY 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 informationANNUAL STATEMENT INSURANCE DEPARTMENT
ANNUAL STATEMENT OF THE MBIA INSURANCE CORPORATION OF ARMONK IN THE STATE OF NEW YORK TO THE INSURANCE DEPARTMENT OF THE STATE OF FOR THE YEAR ENDED DECEMBER 31, 2012 PROPERTY AND CASUALTY 2012 ASSETS
More informationInsurance Terms. COMMON TERMS... 3 About Best s Credit Ratings... 3 Agent... 3
Insurance Terms To look up the definitions of commonly used insurance terms click on the term below to move to that section of the document. We hope that you find this information helpful. Our comprehensive
More information2015/2016 Filing Smart
Data Call Schedule Call Name Who Files Due Date Purpose s Published From Call Data Closed Claim Retention Groups, and Self-Insured Retentions writing general liability,, Automatically Due: Insurers are
More informationSECTION III. Definitions have been included in these instructions to assist insurers with the preparation of their filings.
SECTION III Definitions have been included in these instructions to assist insurers with the preparation of their filings. This section is not a complete set of insurance and insurance accounting definitions
More informationBasic 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 informationGIIRR 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 informationVIRGINIA LICENSE TYPES AS EFFECTIVE 9/1/02 TITLE 38.2, CHAPTER 18, CODE OF VIRGINIA CONVERSION TABLE
VIRGINIA LICENSE TYPES AS EFFECTIVE 9/1/02 TITLE 38.2, CHAPTER 18, CODE OF VIRGINIA CONVERSION TABLE CURRENT LICENSE CODE NEW LICENSE EFFECTIVE 9/1/02 CODE Life & Health 001 Life & Annuities Health Those
More informationSYLLABUS 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 informationChapter 1 Insurance Principals & Concepts 1
Contents Chapter 1 Insurance Principals & Concepts 1 Page I. The Concept of Insurance 1 What is Insurance? 1 II. Types of Property & Casualty Insurance 1 Parts of an Insurance Contract 2 Standardized Policies
More informationLINES OF BUSINESS MATRIX
ALABAMA 1 Fire Property (Sec. 27-5-5) 2.1 Allied Lines Property (Sec. 27-5-5) 2.2 Multiple Peril Crop Property (Sec. 27-5-5) 2.3 Federal flood Property (Sec. 27-5-5) 3 Farmowners multiple peril Property
More informationWCIRB 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 informationThe 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 informationMontana 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 informationUsing 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 informationSOA 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 informationCOLLECTION & PUBLICATION OF GENERAL INSURANCE STATISTICS AN OVERVIEW OF REGULATORY BEST PRACTICE. Win-Li Toh 20 November 2014
COLLECTION & PUBLICATION OF GENERAL INSURANCE STATISTICS AN OVERVIEW OF REGULATORY BEST PRACTICE Win-Li Toh 20 November 2014 What we ll cover today A potted history of regulation: Australia, NZ, US, Canada
More informationQUEENSWAY INTERNATIONAL INDEMNITY COMPANY (NOW KNOWN AS NORTH POINTE CASUALTY INSURANCE COMPANY)
REPORT ON EXAMINATION OF QUEENSWAY INTERNATIONAL INDEMNITY COMPANY JACKSONVILLE, FLORIDA (NOW KNOWN AS NORTH POINTE CASUALTY INSURANCE COMPANY) AS OF DECEMBER 31, 2003 BY THE OFFICE OF INSURANCE REGULATION
More informationClosed Confirmed Consumer Complaints by Coverage Type As of October 26, 2015
Data reflected in this report is voluntarily submitted to the NAIC proprietary Complaints Database System (CDS) by state insurance departments. Not all states provide all of their complaint data to the
More informationXYZ 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 informationCIA Water Damage Risk and Canadian Property Pricing Research Project
Institute for Catastrophic Loss Reduction Friday Forums CIA Water Damage Risk and Canadian Property Pricing Research Project January 17, 2014 Jacqueline Friedland FCIA, FCAS, FSA, MAAA Houston Cheng FCIA,
More informationI-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 informationEndurance 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 informationU.S. Homeowners Market
U.S. Homeowners Market Casualty Actuarial Society Spring Meeting Kelleen Arquette, FCAS, MAAA May 2013 2013 Towers Watson. All rights reserved. AGENDA Agenda Market Overview Market Definition Direct Written
More informationStatistical Plans for Property/Casualty Insurers Virginia R. Prevosto, FCAS
Statistical Plans for Property/Casualty Insurers Virginia R. Prevosto, FCAS 201 STATISTICAL PLANS FOR PROPERTY / CASUALTY INSURERS by Virginia R. Prevosto, FCAS, MAAA Abstract This paper reviews the genesis
More informationRatemaking Methods in Insurance Operations Part 2. Factors to Consider When Developing Credible Premiums
Ratemaking Methods in Insurance Operations Part 2 Factors to Consider When Developing Credible Premiums Factors to Consider in the Delay of Data Collection and use of Information: Delays in reflecting
More informationThe 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 informationLIMITATIONS ON WHICH TYPES OF COVERAGE CAN BE PLACED BY EXCESS LINE LICENSEES
COMPLIANCE ADVISOR LIMITATIONS ON WHICH TYPES OF COVERAGE CAN BE PLACED BY EXCESS LINE LICENSEES A PUBLICATION BY THE EXCESS LINE ASSOCIATION OF NEW YORK ONE EXCHANGE PLAZA 55 BROADWAY 29TH FLOOR NEW YORK,
More informationCHAPTER 10 - PROPERTY AND CASUALTY DIVISION SECTION.0100 - GENERAL PROVISIONS
CHAPTER 10 - PROPERTY AND CASUALTY DIVISION SECTION.0100 - GENERAL PROVISIONS 11 NCAC 10.0101 PURPOSE OF DIVISION 11 NCAC 10.0102 DEPUTY COMMISSIONER 11 NCAC 10.0103 DIVISION PERSONNEL History Note: Authority
More informationFINAL 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 informationApplying 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 informationCasualty Actuarial Society
Casualty Actuarial Society Estimating Unpaid Claims Using Basic Techniques Jacqueline Friedland, FCAS, FCIA, MAAA, FCA KPMG LLP With significant contributions by Rachel Dutil, FCAS, FCIA and Edward Lam,
More informationFASB 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 informationThe 26th Voorburg Group Meeting on Service Statistics Newport, U.K., 19 23 September 2011
The 26th Voorburg Group Meeting on Service Statistics Newport, U.K., 19 23 September 2011 Mini-Presentation by David Friedman United States Producer Price Indexes for Non-Life Insurance NAICS 524114 and
More informationReport of Examination of. Harleysville Insurance Company of Ohio Columbus, Ohio. As of December 31, 2009
Report of Examination of Harleysville Insurance Company of Ohio Columbus, Ohio As of December 31, 2009 Table of Contents Subject Page Salutation... 1 Description of Company... 1 Scope of Examination...
More informationReserving 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 informationVERMONT 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 informationSolution. 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 informationAn Actuarial. Advantage. Maximizing the Benefit of an Actuarial Analysis. Prepared by: SIGMA Actuarial Consulting Group, Inc.
An Actuarial Advantage Maximizing the Benefit of an Actuarial Analysis Prepared by: SIGMA Actuarial Consulting Group, Inc. An Actuarial Advantage Maximizing the Benefit of an Actuarial Analysis Copyright
More informationAPPLICATION PROCEDURES FOR COMPANIES SEEKING TO DO BUSINESS IN FLORIDA 69O-136.002
State of Florida - Governor Rick Scott The Office of Fiscal Accountability and Regulatory Reform (OFARR) Results of the Comprehensive Rule Review (Executive Order 11-72) as supplemented by the Enhanced
More informationANNUAL STUDY OF MEDICAL MALPRACTICE INSURANCE MARKET IN ARKANSAS
A REPORT TO THE LEGISLATIVE COUNCIL AND THE SENATE AND HOUSE COMMITTEES ON INSURANCE AND COMMERCE OF THE ARKANSAS GENERAL ASSEMBLY (AS REQUIRED BY ACT 1007 OF 2003) ANNUAL STUDY OF MEDICAL MALPRACTICE
More informationCALCULATION OF THE AMOUNTS OF AN INSURANCE COMPANY S CAPITAL, FOUNDATION FUNDS, RESERVES, ETC., FOR RISKS EXCEEDING NORMAL EXPECTATIONS
CALCULATION OF THE AMOUNTS OF AN INSURANCE COMPANY S CAPITAL, FOUNDATION FUNDS, RESERVES, ETC., FOR RISKS EXCEEDING NORMAL EXPECTATIONS Ministry of Finance Official Notification No.50, February 29, 1996
More informationMINNESOTA 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 informationSup. 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 informationANNUAL INDUSTRY-WIDE ADJUSTMENT OF RATES FOR BASIC COVERAGE EFFECTIVE NOVEMBER 1, 2013 SECTION 4 OF THE AUTOMOBILE INSURANCE PREMIUMS REGULATION
ANNUAL INDUSTRY-WIDE ADJUSTMENT OF RATES FOR BASIC COVERAGE EFFECTIVE NOVEMBER 1, 2013 SECTION 4 OF THE AUTOMOBILE INSURANCE PREMIUMS REGULATION ALBERTA AUTOMOBILE INSURANCE RATE BOARD BOARD DECISION REPORT
More informationProperty and Casualty Insurance. Improvements and Cost Savings
Property and Casualty Insurance Improvements and Cost Savings Self Insured Retention (Deductible) $1 million for Liability Claims $500,000 for Liability Claims This eliminates $500,000 of liability exposure
More informationPosition Classification Flysheet for Insurance Examining Series, GS-1163. Table of Contents
Position Classification Flysheet for Insurance Examining Series, GS-1163 Table of Contents SERIES DEFINITION... 2 EXCLUSIONS... 2 SPECIALIZATIONS AND TITLES... 3 EXPLANATORY STATEMENT... 4 GRADE LEVELS...
More informationFUNDAMENTALS OF RISK MANAGEMENT AND INSURANCE
Preface xv FUNDAMENTALS OF RISK MANAGEMENT AND INSURANCE CHAPTER 1 RISK AND ITS TREATMENT 2 Different Definitions 3 Chance of Loss 4 Peril and Hazard 5 Classification of Risk 6 Major Personal Risks and
More informationREPORT ON EXAMINATION OF THE SOMPO JAPAN FIRE AND MARINE INSURANCE COMPANY OF AMERICA AS OF DECEMBER 31, 2012
REPORT ON EXAMINATION OF THE SOMPO JAPAN FIRE AND MARINE INSURANCE COMPANY OF AMERICA AS OF DECEMBER 31, 2012 DATE OF REPORT APRIL 23, 2014 EXAMINER HAILS TAYLOR, CFE TABLE OF CONTENTS ITEM NO. PAGE NO.
More informationANNUAL RETURN: FORM 1 - FUND BALANCE SHEET ZURICH INSURANCE COMPANY LTD (SINGAPORE BRANCH) 34,844,737 Land and buildings
ANNUAL RETURN: FORM - FUND BALANCE SHEET I86G General: Singapore Insurance Fund Annex Row No. ASSETS Equity securities A Debt securities B,8,77 Land and buildings C Loans D Cash and deposits 5,6,76 Other
More informationCasualty Actuarial Society
Casualty Actuarial Society Basic Ratemaking Geoff Werner, FCAS, MAAA Claudine Modlin, FCAS, MAAA EMB With significant contributions by other EMB associates: Alice Gannon, FCAS, MAAA; Serhat Guven, FCAS,
More informationRATE FILING METHODS FOR PROPERTY/CASUALTY INSURANCE, WORKER S COMPENSATION, TITLE 5/06
Explanation: In a state with prior approval, a filing may be deemed to have been approved after a certain number of days. If such a provision exists, the number of days is noted in parentheses. File and
More informationNEW Insurance Classes 2012 Schedule
NEW Insurance Classes 2012 Schedule CPCU 560 Financial Services Institutions Fee $250 January 25-May 23 rd, Wednesdays Manage risks more effectively by learning the unique risks faced by financial institutions
More informationInsurance 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 informationREPORT ON EXAMINATION OF THE JEFFERSON INSURANCE COMPANY AS OF DECEMBER 31, 2005
REPORT ON EXAMINATION OF THE JEFFERSON INSURANCE COMPANY AS OF DECEMBER 31, 2005 DATE OF REPORT SEPTEMBER 20, 2007 EXAMINER ADEBOLA AWOFESO TABLE OF CONTENTS ITEM NO. PAGE NO. 1 Scope of examination 2
More informationFlorida Senate - 2016 SB 1274
By Senator Latvala 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 A bill to be entitled An act relating to sinkhole insurance; amending s. 624.407, F.S.; specifying
More information2012 Minnesota Homeowners Report
2012 Minnesota Homeowners Report Minnesota Department of Commerce 2012 Homeowners Insurance Report Page 1 2012 Minnesota Homeowners Report The Minnesota Homeowners Report is completed annually by the Minnesota
More informationArticle from: The Actuary Magazine. February/March 2013 Volume 10, Issue 1
Article from: The Actuary Magazine February/March 2013 Volume 10, Issue 1 Education Structuring the General Insurance Fellowship Track By Anthony E. Cappelletti and W. Scott Lennox The decision to create
More informationINSTRUCTIONS FOR COMPLETING INSURANCE COMPANY FINANCIAL STATEMENTS
INSTRUCTIONS FOR COMPLETING INSURANCE COMPANY "DRAFT VERSION FOR FIRST REVIEW ONLY" Submitted to: Minstry of Finance and Economy Head of Insurance Department Republic of Armenia Submitted by: BearingPoint
More informationReport of Examination of. Citizens Insurance Company of Ohio Columbus, Ohio. As of December 31, 2011
Report of Examination of Citizens Insurance Company of Ohio Columbus, Ohio As of December 31, 2011 Table of Contents Subject Page Salutation... 1 Description of Company... 1 Scope of Examination... 1 Management
More informationIRAS CIRCULAR TAX DEDUCTIBILITY OF GENERAL INSURERS RESERVES AGAINST INCURRED BUT NOT REPORTED CLAIMS (IBNR CLAIMS)
IRAS CIRCULAR TAX DEDUCTIBILITY OF GENERAL INSURERS RESERVES AGAINST INCURRED BUT NOT REPORTED CLAIMS (IBNR CLAIMS) Published by Inland Revenue Authority of Singapore First published on 30 Jun 1997 Revised
More informationSession1: Commercial Pricing & Rate Adequacy
08/08/2014 INSTITUTE OF ACTUARIES OF INDIA 5th Capacity Building Seminar in GI Session1: Commercial Pricing & Rate Adequacy Table of Contents 1. What is Commercial Insurance? 2. SME and Large Enterprises
More informationGLOSSARY. 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 the Group and its business. The terms and their meanings may not correspond to standard industry
More informationFCCI COMMERCIAL INSURANCE COMPANY
REPORT ON EXAMINATION OF FCCI COMMERCIAL INSURANCE COMPANY SARASOTA, FLORIDA AS OF DECEMBER 31, 2010 BY THE OFFICE OF INSURANCE REGULATION TABLE OF CONTENTS LETTER OF TRANSMITTAL...- SCOPE OF EXAMINATION...
More informationUnited Fire Group, Inc. Reports Second Quarter 2015 Results
United Fire Group, Inc. Reports Second Quarter 2015 Results CEDAR RAPIDS, Iowa - (GLOBE NEWSWIRE) - United Fire Group, Inc. (NASDAQ OMX: UFCS), August 4, 2015 - FOR IMMEDIATE RELEASE Consolidated Financial
More informationTITLE 114 LEGISLATIVE RULES INSURANCE COMMISSIONER SERIES 22 MEDICAL MALPRACTICE ANNUAL REPORTING REQUIREMENTS
TITLE 114 LEGISLATIVE RULES INSURANCE COMMISSIONER SERIES 22 MEDICAL MALPRACTICE ANNUAL REPORTING REQUIREMENTS 114-22-1. General. 1.1. Scope. -- This legislative rule establishes guidelines and procedures
More informationKINGSTONE 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 informationGUIDELINES 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 informationPhilippines - General Insurance (continued)
Philippines International Comparison of Insurance * May 2009 Philippines General Insurance Definition Definition of property and casualty insurance company Non-life insurance company is one which solicits
More information