Browse Research
Viewing 4626 to 4650 of 7690 results
1994
Reinsurance Research - Market Dynamics
1994
International investments grows steadily. However, the benefits of diversification across markets are more often addressed for stock than for bond portfolios. In the later case, currency volatility cannot be ruled out because interest rate and exchange rate levels of risk are similar.
1994
"This document is intended to provide guidance to actuaries in the application of the standard of practice (SOP) ‘Provision for Adverse Deviations for Property & Casualty Insurance Companies’ in valuing the policy liabilities of a property casualty insurance company operating in Canada, domestic or foreign, or any similar liabilities.” The document explains that the SOP’s provision for adverse deviations (PFAD) may be included explicitly, by
1994
Two fundamental concepts related to the discounting of liabilities are addressed in summary fashion. The first is the payment pattern of the liabilities to be discounted. The second is the discount rate used to present value future payments.
KEY WORDS: Discounting, Financial Reporting, Investments, Payment Pattern, Risk margin.
1994
The accounting principles behind the calculation of earned premium and unearned premium reserves are outlined. The purpose of the unearned premium reserve as well as the data required to calculate the reserve are discussed. The nature of the accrued retrospective premium asset is also discussed.
KEY WORDS: Reserving, Unearned Premium Reserving, General Accounting, Data, Retrospective Rating
1994
Duration has been touted as a tool for measuring the sensitivity of the price, or value, of an asset, or liability, whose cash flows are fairly determinable, to changes in interest rates. This paper seeks to describe the above relationship in a concrete fashion by expressing the value of an asset or liability as a function of the current interest rate.
1994
The purpose of this paper is to examine the capital market effect major catastrophes have on property/casualty insurers operating in the United States. It is widely accepted that capital markets are semi-strong efficient, i.e., prices of securities incorporate all currently available public information. A number of studies using event methodologies have examined capital market reaction to firm announcements of financial bankruptcy.
1994
The purpose of this paper is to derive an explicit formula for the first two moments of the Inverse Gaussian distribution, in the presence of censoring. For reasons of completeness we also consider truncation of the Inverse Gaussian distribution by an upper limit.
KEYWORDS Inverse Gaussian; Censoring; Truncation; Deductibles; Limits; Moments.
1994
Loss reserves are the largest liability on the balance sheet of an insurance company, yet they are only estimates. Even the actuary responsible for making the estimates is often unable to quantify the inherent uncertainty. This is partly a consequence of the complexity of estimating the variability of the reserve estimates. Correlation across several dimensions makes statistical measurement of uncertainty difficult.
1994
This Joint Policy Statement issued by the CICA and the CIA notes the need to establish communications between the actuary and the auditor. This booklet gives an overview of the communication process between actuaries and auditors and a brief discussion on some major issues about which actuaries and auditors should have a mutual understanding.
1994
Choice no-fault plans are popular options with state legislatures considering reforms to the private passenger automobile insurance system. Such plans offer the insured an opportunity to choose the level of coverage needed not only for first part injuries, but also for third party liability.
1994
Uses chaos theory in analysis of interest rates and other assets.
1994
Many reinsurance contracts have adjustable premium and loss limiting features that complicate the reserving practice. This session addresses such factors as swing rating, loss-ratio caps, profit commissions, aggregate deductibles, and pre-set commutation terms.
1994
Financial pricing models are now widely used in insurance pricing and price regulation. However, most practical applications of these models have not taken into account either the effects of firm capital structure or the differences in financial risk across lines of insurance.
1994
It is well known that actual future losses for most lines of business will, with certainty, not equal their estimated value. In order to provide a measure of the precision of loss reserve estimates, a diversity of procedures for quantifying loss reserve variability is currently is use. Many of these procedures have significant limitations, while other are not well understood and therefore are rarely used.
1994
The paper introduces an alternative approach to the traditional experience rating theory in automobile insurance. The approach is based on a simple theory of how high deductibles financed by loans maintain the risk differentiation in an automobile insurance arrangement. Thus the approach differs totally from the usual bonus-malus classes as well as from the credibility based experience rating ideas.
1994
Keyword: Workers Compensation
1994
This paper provides an overview of the asset liability management and investment process employed by USF&G. We call this five step process the asset liability management efficient frontier (ALMEF). The goal is to provide a framework for superior investment decision making. The five step ALMEF process is: 1. Economic evaluation of the balance sheet that considers the ongoing nature of the business 2.
1994
Allocated loss adjustment expense reserves are a large component of an insurance company’s liabilities. For many lines of business, allocated loss adjustment expenses are growing as a percentage of losses. As a response, many companies are taking actions to control these costs implementing systems to better monitor them. Some companies are re-engineering the entire claim settlement process.
1994
Robert Bender develops an equation for the relationship between the aggregate incurred loss ratio and the aggregate retrospective return premium. This discussion will illustrate this relationship using data for groups of actual insureds.
1994
The aggregate premium returned to a group of individual risks that are subject to retrospective rating depends upon the retrospective rating formula, the aggregate loss ratio of the risks, and the distribution of the individual risks’ loss ratios around the aggregate. As the aggregate incurred loss ratio for a group of risks increases, the aggregate returned premium decreases, but not as rapidly as the loss ratio increases.
1994
In this paper some results are given on the addivity of chain-ladder projections. Given two claims development triangles, when do their chain-ladder projections add up to the projections of the combined triangle, that is the triangle being the element-wise sum of the two given triangles?
Necessary and sufficient conditions for equality are given.
1994
The purpose of this paper is to explore how such a risk margin should be incorporated in statutory accounting. Rather than researching methods of calculating risk, this paper will assume that a satisfactory method for calculating risk margins will be separately developed. There are three common situations where the term “risk margin” is used: undiscounted loss reserves, loss portfolio transfers, and self-insurance trust funds.
