Browse Research
Viewing 4701 to 4725 of 7695 results
1993
Actuaries use development techniques to estimate future losses. Unfortunately, real data is subject to both random fluctuations and systematic distortions; only in textbooks can we expect smooth, stable development patterns. To correct for this, developed losses are often weighted with a prior estimate to stabilize the results.
This paper describes a method that applies credibility directly to the loss development process.
1993
Manual ratemaking for Workers‘ Compensation insurance policies is a complex and continually evolving process. The transition to a loss costs environment in many jurisdictions compels company actuaries to be familiar with all ratemaking procedures. This reading goes through the standard ratemaking procedures step-by-step, notes alternative methods, and discusses the issues with which company actuaries must deal.
1993
In this paper, we use a pure premium approach to price a new vehicle extended warranty.
Coverage provided by a new vehicle extended warranty begins where the manufacturer's factory warranty ends. New vehicle extended warranty coverage is triggered and limited by both time and mileage. Since factory coverage is constantly being enhanced, extended warranty coverage rarely remains the same long enough for comparable statistics to develop.
1993
Determining insurance prices certainly has actuarial implications, but it's too important to be left solely to actuaries. Insurers which successfully manage the pricing decision process all recognize pricing as an integral part of the annual operational planning process.
1993
“The California Table L” is as pertinent today as it was when it was published almost twenty years ago. It is well-constructed, rigorous and easy to follow. The subject, Table L, provides great simplicity in calculating retrospectively rated plans with a prescribed individual accident limit. It enables a built-in correction for the overlap of the charge for the per-accident limit and the aggregate loss limit.
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.
