Browse Research
Viewing 2826 to 2850 of 7690 results
2003
Judges and juries frequently rely on the evidence of expert witnesses. Actuaries who are requested to prepare a report and/or give evidence should be aware of what courts expect of them. This paper outlines recent developments in relation to expert evidence and provides some guidance for those involved in this field.
Keywords: expert reports, obligations of experts, evidence of experts
2003
Recent falls in stock markets have once again exposed investors in superannuation and managed funds to negative rates of return. A common, and possibly self-interested, response from the managed funds industry is that such declines can only be anticipated in hindsight.
2003
Within the value creation chain of an insurance company the role of sales networks is fundamental, as creating shareholder value is strictly linked with creating customer value.
As sales networks are the main point of contact with customers, choosing the best possible distribution structure is vital. Selling channels have become a distinctive feature of insurers, together with their products and services.
2003
A systemic approach has been adopted to construct a model for a safety management system (SMS). It has been applied to the case of fire safety for an oil and gas organization as an illustration, although the approach is general. The essential purpose has been not merely to identify functions but to create a "structure" for a SMS, within which necessary "process" or action takes place.
2003
Interstate data unequivocally support the premise that caps on noneconomic damages are an effective means of reducing malpractice costs.
2003
Credibility theory offers great help for life insurers who understand how to use the tool and know its potential and limitations.
2003
This paper explores extreme events and their impact on the insurance market.
There are 5 basic sections:
The first of these relates to a description of the types of events that we need to consider. The appendices give fuller details and data relating to the risks. These form an historic perceptive of the issues.
This is followed by an explanation of Extreme Value Theory.
2003
This paper considers what is “Compensation Culture”. We’ve reviewed a range of events for which compensation is paid and have estimated what these cost UK plc. The ball-park “cost of compensation” is roughly £10b per year, over 1% of GDP. This cost has been increasing at 15% per year recently and is set to continue rising at over 10% per year. Over a third of the total is legal and administration expenses.
2003
We actuaries, detectives of the first order, are presented with a most intriguing case: numerous, grisly bodies of dead insurance companies and physicians’ practices in public view, various signs of intrigue and foul play abound, suspects galore, an abundance of alibis, and an endless supply of opinions on how the culprit(s) must repay their debt to society.
2003
Recent insolvencies and catastrophic events have heightened concern in the insurance industry over the risk of uncollectible reinsurance. The current approach for estimating reserves for this line in the Annual Statement is relatively unscientific and, as a result, may not reflect the company's true reinsurance recoverability risk.
2003
The Myers and Read capital allocation formula is an important new actuarial result. In this paper, we give an overview of the Myers and Read result, explain its significance to actuaries, and provide a simple proof. Then we explain the assumption the allocation formula makes on the underlying families of loss distributions as expected losses by-line vary.
2003
The actuarial and financial approach to the pricing of risk remain different despite the increasingly direct interconnection of financial and insurance markets. The difference can be summarized as pricing based on classical risk theory vs. non-arbitrage pricing. However, comparable pricing principles are of importance when it comes to transferring insurance risk to financial markets and vice versa as it is done e.g.
2003
This paper begins with a description of how to calculate the aggregate loss distribution for a reinsurer. We include most of the standard exposures as well as property catastrophe exposure. Next we show how this aggregate loss distribution can be used to determine the needed capital, and its cost, for a reinsurer.
2003
This paper begins with a description of how to calculate the aggregate loss distribution for an insurer. The model underlying this calculation reflects dependencies between the various lines of insurance. We include most of the standard insurance exposures as well as property catastrophe exposure. Next we show how this aggregate loss distribution can be used to allocate the cost of capital and evaluate various reinsurance strategies.
2003
On the surface, capital allocation sounds contradictory to the states purpose of insurance, which is diversifying risk. In spite of that, it is commonly used as a tool by insurers to manage their underwriting risk. This paper examines the economics underlying how insurers might use capital allocation when capital is scarce and has a price.
2003
In this paper, we show an especially simple way to produce Myers-Read capital allocations in simulations, by using the Ruhm-Mango-Kreps (RMK) conditional risk algorithm. The algorithm uses only weighted averages. In particular, it does not require any calculus, even though the Myers-Read formula is a differential equation.
2003
The new rules presented in the documents published by Basel II, obliges to the actuaries to think in this new challenge that is to provide answers to the Institutions that need comply with these new rules based in three risk principal components, Market Risk, Credit Risk, and Operational Risk
When we need to develop an estimation of Market VaR, we must predict the probability of a maximum loss.
2003
The aim of this paper is to provide the reader with a strong insight into the reasons why insurance companies fail. No company can be considered beyond the possibility of failure and for insurance companies, whose business is covering the risks of others, this is particularly true.
By drawing upon previous research, combined with case study analysis, the paper provides a comprehensive appraisal of the reasons for insurance company failure.
2003
With the NAIC's adoption of the Accounting Practices and Procedures Manual, the statutory accounting practices for the P&C insurance industry have now been codified in a series of Statements of Statutory Accounting Principles (SSAP's). Within the SSAP's, various terms such as "Management's Best Estimate," "Ranges of Reserve Estimates" and "Best Estimate by Line" have been defined. In addition, the Actuarial Standard of Practice (ASOP) No.
2003
The minimum bias classification ratemaking procedure, introduced by Robert Bailey and LeRoy Simon in 1960, determines rate relativities simultaneously for two or more classification dimensions. This paper summarizes the minimum bias procedure for the practicing actuary and provides the intuition for several bias functions:balance principle, least squares, Â-squared, and
maximum likelihood.
2003
Schedule F, Parts 1-3, disclose a company’s reinsurance transactions for both ceded and assumed business. Parts 4-7 provides the data to compute the provision for reinsurance for recoverables from unauthorized reinsurers and from slow-paying authorized reinsurers, for loss recoverables more than 90 days past due, and for amounts in dispute.
2003
Schedule P is a complex section of the Annual Statement, demanding much expertise to complete and to understand. The cross checks performed by the NAIC compare the Schedule P figures within its various parts, with other pages of the Annual Statement, and with Schedule P data from the preceding year.
2003
The development of financial pricing models for insurance products and the advent of risk-based capital requirements have led to an increasing focus on capital. This study note explains the differences between statutory surplus and invested capital and the implications for actuarial pricing and valuations.
2003
This document is intended primarily to further the risk management education of candidates for membership in the Casualty Actuarial Society (CAS). Current members of the CAS as well as other risk management professionals should also find this material of interest. In Chapter II, the evolution to and rationale for enterprise risk management (ERM) is explained.
2003
This article introduces to the statistical and insurance literature a mathematical technique for an a priori classification of objects when no training sample exists for which the exact correct group membership is known. The article also provides an example of the empirical application of the methodology to fraud detection for bodily injury claims in automobile insurance.
