Abstract
Focusing on results by individual department, line of business, classification or other segment of a company's book of business leads to a loss of capacity where large companies act as if they were smaller companies. Limiting exposure to control the variation in results for a department will lead to a smaller net line than is necessary from the company standpoint. Understanding of this phenomena can help explain some unusual intracorporate arrangements.
Volume
May
Page
353-367
Year
1987
Categories
Actuarial Applications and Methodologies
Capital Management
Capital Allocation
Actuarial Applications and Methodologies
Dynamic Risk Modeling
Publications
Casualty Actuarial Society Discussion Paper Program