Actuarial Analysis Map

Al Rhodes, ACAS, MAAA

A picture can be worth a thousand words.  Or, in this case, a "map" can be an easy way to explain how the terminology used by actuaries fits together in one diagram.

If you are a broker, you will eventually discuss with some of your clients the following terms and how they all work together:

  • Loss Data
  • Loss Development Factors
  • Ultimate Losses
  • Paid Losses
  • Outstanding Liability
  • Trend Factors
  • Trended Losses
  • Exposure Data
  • Trend Factors
  • Trended Exposures
  • Pure Loss Rate
  • Projected Exposures
  • Projected Losses

So, as SIGMA continues to develop and publish resources that help you communicate, we decided to visually show how they are related in our “Actuarial Analysis Map.”  The map is shown below and you can download a copy from the portal at

Actuarial Analysis Map

SIGMA is ready to help you communicate effectively with your clients.  If you have not registered for access to our portal, please do so today by visiting

Also, if you would like to discuss any current issues facing your clients or prospects, please contact me at or 615-376-5110 x 202.  One of the best resources offered through our Powered by SIGMA program is our staff – available for “what-if” and “brainstorming” conversations at no charge.

© 2012 SIGMA Actuarial Consulting Group, Inc.

Leave a Reply

Your email address will not be published. Required fields are marked *


Recent Posts

SIGMA's Retention Analytics Overview Brochure
One of SIGMA’s core objectives as an actuarial consulting firm is to reduce the perceived gap standing between insurance professionals and their ability to utilize actuarial analytics in their day-to-day work. All too often, this obstacle stems from of a lack of time, resources, or comfort in usin...
Read More
Optimizing Cyber Risk Management: Key Captive Considerations
In a recent article published by Captive International, Michelle Bradley and Jason Luckett discuss, “Optimizing Cyber Risk Management: Key Captive Considerations”. In it, they examine the parameters of cyber risk, and how it changes constantly as hackers adapt and expand their avenues of threat....
Read More
Data Requirements For Actuarial Loss Projections and Reserve Analyses 
The keys to a reliable actuarial analysis are good data and reasonable underlying assumptions for the program being analyzed. Therefore, any information regarding the insurance program which could materially affect the analysis should be provided to your actuary.   The two most common types of act...
Read More
SIGMA's 2023 Collateral Survey Results
In 2023, SIGMA conducted a collateral survey to assess, on a national basis, trends in collateral negotiations, exposures, reviews, arbitration, and many other factors. Since 2009, SIGMA has conducted this survey eight times which has allowed us to better understand both short-term and long-term tre...
Read More

Subscribe to Our Blog

hello world!
Copyright © 2023 SIGMA Actuarial Consulting Group, Inc. All Rights Reserved.
chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram