Browse Research
Viewing 4701 to 4725 of 7690 results
1993
In his discussion of the author’s paper, Ira Robbin takes issue with several aspects of the proposed risk load formula. In this response, the author seeks to clarify some of these differences and expand upon the role of reinsurance in the pricing of high limit policies.
1993
Introductory reserving concepts are defined and discussed, including claim payment patterns and case reserving techniques. Various reserving methods are discussed including loss ratios estimates, chain ladder methods, the Bornhuetter-Ferguson approach, as well as the use of counts and average values. Loss reserve discounting is also addressed. Sample problems and solutions are provided.
1993
Modeling approaches for projecting tail development beyond the most mature data points will be presented. These will include identifying patterns is loss development factors, fitting truncated distributions to emerged losses, separately projecting frequency and severity, and a transition matrix method.
1993
This paper is based on the experience of being a unit manager in a large insurance company actuarial department, and subsequently building and managing a strong casualty actuarial staff within a brokerage firm. Through observation, trial and sometimes error, the author has defined Five Steps to guide building, structuring and managing an actuarial staff.
1. Defining the Role of the Actuaries
2. Objective Evaluation of the Staff
3.
1993
Loss distributions have a number of uses in the pricing and reserving of casualty insurance. Many authors have recommended maximum likelihood for the estimation of the parameters. It has the advantages of asymptotic optimality (in the sense of mean square error) and applicability (the likelihood function can always be written).
1993
Insurance risk has moved to the forefront of the actuary’s concerns. Three other papers on this topic by Fellows of the Casualty Actuarial Society, all written independently, have appeared at the same time as this one: Kreps [14], Venter [24], and Meyers (IS]. insurance risk is the foundation of the NAIC risk-based capital requirements (Hartman, et al. [II]; Kaufman and Liebers 1121).
1993
Liability for occupational disease may be prorated among responsible employers or assigned to the last employer. In theory, it is shown that workers’ compensation with a prorating liability rule may achieve optimal compensation and deterrence over time if two-part liability can be imposed to employers; such optimum is not expected under workers’ compensation with the last employer liability rule.
1993
In this article we break asset's betas with common factors into components attributable to news about future cash flows, real interest rates, and excess returns. To achieve this decomposition, we use a vector autoregressive time-series model and an approximate log-linear present value relation. The betas of industry and size portfolios with the market are largely attributed to changing expected returns.
1993
This paper uses a vector autoregressive model to decompose excess stock and 10-year bond returns into changes in expectations of future stock dividends, inflation, short-term real interest rates, and excess stock and bond returns. In monthly postwar U.S. data, stock and bond returns are driven largely by news about future excess stock returns and inflation, respectively.
1993
This standard defines the Canadian Institute of Actuaries’ accepted actuarial practice for the valuation of products where the assets supporting the liabilities are large in comparison with the earnings. The paper outlines a technique, the cash flow valuation method, or CFVM, that can be used to determine the aggregate policy liability.
1993
The required loss reserve for a recent time period is estimated by using the recent loss experience plus two probability distributions. One distribution is of ultimate losses for the recent period, based on prior experience and rate adequacy changes. The other distribution is of the ratio of the estimator based on recent experience to the true ultimate loss.
1993
Reserving for unallocated loss adjustment expenses often received little attention, despite the fact that for some situations the liabilities associated with ULAE can be significant. This session features several techniques for estimating the required ULAE reserve.
1993
ISO, Insurance Services Office, has often been called an actuarial organization because that has always been one of its fundamental strengths. No other entity in the property casualty insurance industry hires as many actuarial trainees each year. Counting students and GAS members, the size of the actuarial department has approximated 200 in recent years.
1993
The purpose of this paper is to discuss total quality management (TQM) . Very few service companies have been able to reap full benefits of TQM. One major reason for its inadequate success is that of trying to implement in service companies techniques that have been successful in manufacturing. In manufacturing, emphasis of TQM is on "zero defects". Control charts and sampling are the major tools of quality control.
1993
This paper examines the motivations and procedures for applying the principles of Total Quality Management (TQM) to Property/Casualty insurers. The basic premise emerges that the essential measure of product and service quality for an insurer is the overall financial soundness of the company. It follows that the Actuary, custodian of the riskiest items on the balance sheet, has a special interest and a central role in the TQM process.
1993
The continuing solvency of property and casualty insurance companies, as well as of other financial institutions, has become an issue of great importance and major concern during the past decade. While solvency has always been a major consideration for actuaries, the experience of multiple failures of financial institutions in the past several years has caused the profession to focus more attention on the problem.
1993
This paper discusses the role of surplus in an insurance company and alternative measurements of rate of return on surplus. The multi-year dimension of surplus and its linkage to liabilities over time is explained, and the concept of a calendar period balance sheet as the sum of underlying accident period balance sheets is introduced.
1993
There are usually many issues raised in the course of performing actuarial analysis for a property/casualty insurance company. There are numerous ways in which all-important subtleties and implication of the work performed can be lost.
1993
The statutory return on surplus for the insurance industry has averaged slightly over 10% during the 1970's and 1980's. Estimates of the cost of equity capital during the same period have averaged about 16%. The cost of capital and the firm's accounting return may differ for various reasons. For instance, company growth may depress the statutory return on surplus in several ways.
1993
The National Association of Insurance Commissioners (NAIC) adopted a revision to the instructions for the 1992 annual statement Blank due March 1, 1993 regarding the scope and content of the statement of actuarial opinion on casualty loss reserves. A final copy of those 1992 instructions follow. The changes from the 1991 instructions are noted with sidebars. Some of those changes were adopted in June 1992.
