Browse Research
Viewing 5201 to 5225 of 7695 results
1990
The objective of this article is to suggest an explanation for the observed market structure of the insurance industry, which is based on three parties - insureds, insurers, and reinsurers. This structure should not be viewed simply as a special version of the common marketing system in which the reinsure is analogous to a wholesaler and the insurers are analogous to the retailers.
1990
The major property-liability insurance pricing models are evaluated over the period 1926-1985, and results of the various models are compared in terms of the ability to predict actual underwriting profit margins. Differences between model predictions and realized underwriting profit margin series are examined over the entire period and various subperiods.
1990
This contribution to the first AFIR Colloquium will summarize the development of insurance pricing models as they have been applied to property-liability (general or non-life) lines in the United States during the period 1969-199. The development is traced through regulatory decisions and academic research rather than through individual company methods of analysis, the latter being proprietary in nature.
1990
Insurance companies are risk averse, even as individuals are. Casualty actuaries hate suggested several methods of calculating risk loads to compensate the insurer .for the risk it accepts. Methods currently in use, and reviewed in this paper, consider (a) the standard deviation and variance of the loss distribution, (b) utility functions, (c) the probability of ruin, and (d) reinsurance costs. These methods are theoretically unsound.
1990
Contrary to theoretical expectations, measures of willingness to ac- cept greatly exceed measures of willingness to pay. This paper re- ports several experiments that demonstrate that this "endowment effect" persists even in market settings with opportunities to learn. Consumption objects (e.g., coffee mugs) are randomly given to half the subjects in an experiment. Markets for the mugs are then con- ducted.
1990
The return on the marginal surplus committed to support the variability of a proposed reinsurance contract is used to derive an appropriate risk load for reinsurers.
1990
The conditional efficiency of an unspecified portfolio of a value-weighted stock index and a long-term government bond index is rejected in a framework that allows the factor risk-premia, asset betas, and residual variances to vary with the levels of observable state variables.
1990
This paper considers the rates of return appropriate for use in the discounting of loss reserves. The author reviews some of the modern theory of term structure of bond interest rates. Discount factors for fixed term single payment future liabilities are developed for the case in which those liabilities are supported by a bond portfolio, and the factors are interpreted within the term structure theory.
1989
The common theme which appears to have evolved in the actuarial methodology for determining self-insurance funding contributions can be described in basic terms as a two-step process: (a) estimating expected retained losses for the self-insured entity and (b) estimating a safety margin or risk loading to maintain funding at a selected high level of confidence. Variations on this general theme abound.
1989
Classifications/LOB-Auto Physical Damage
1989
Data Administration Including Warehousing & Design (general or introductory)
1989
Many criteria for choosing optimal reinsurance treaties have the common property that a treaty is considered preferable to another if it is lower in stop-loss order, which means that it generates uniformly lower stop-loss premiums. Such criteria include maximizing utility of wealth, minimizing ruin probability and many others.
1989
1989
The meaning of consistency of increased limit factors is considered and a new consistency condition is proposed It is shown that the three major measures of risk satisfy the new consistency condition with no restrictions. the problems of specifying unique risk loaded rates for high limits are discussed. A revised subtraction formula is given. Risk "Profile" curves are suggested as a method to convey the subjective aspect of risk load.
1989
This paper values a contingent claim to discrete stochastic cash flows generated by a Poisson arrival process with a randomly varying intensity parameter. In the most general case, both the size and the arrival intensity of cash flows may correlate with state variables in a continuous time economy.
1989
Two ways of estimating ultimate incurred losses are loss based and exposure based. The former uses a factor applied to losses emerged to date; the latter bases the loss estimate on the exposure, and ignores emerged losses. A hybrid is the Bornheutter–Ferguson method, which adds the emerged losses to an appropriate percentage of the exposure based estimate. This paper considers a weighting of these three estimators using credibility concepts.
1989
The purpose of this paper is to develop a simple model for determining distributions of present value estimates of aggregate losses. Three random components of the model that will be described are aggregate losses, payout patterns, and interest rates.
In addition, this paper addresses the impact of timing and investment variability on risk margin/solvency requirements.
1989
In his insightful and ground-breaking essay entitled The Structure of Scientific Revolutions, Thomas S. Kuhn discussed the notion of scientific advancement. In particular, he introduces the idea of a paradigm, a body of knowledge and beliefs which provides direction for research.
1989
Current accounting techniques for P&C Insurance companies do not represent the real values for assets and liabilities. Discounting is now a major issue, which has been brought more to the fore with the Tax' Reform Act of 1986. Apart from some special situations* unpaid liabilities are represented at their undiscounted value.
Cash flow techniques are becoming recognized as realistic methods of valuation.
1989
This report has been prepared by the Long Range Planning Subcommittee of the Syllabus Committee at the request of the Board of Directors of the CAS. The purpose is to evaluate the educational content of the syllabus from the standpoint of the educational needs of future actuaries. The subcommittee has been reviewing Syllabus content for several years in terms of a long range comprehensive plan for educating actuaries.
1989
Insurers typically earn greater profits on policies that have been with the insurer for a number of renewal cycles than on new business. This tendency is known as the aging phenomenon and is believed to occur on all lines of business. Although the aging phenomenon is common knowledge, no mathematical methods for incorporating this phenomenon into pricing decisions have been documented.
