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 www.SIGMAactuary.com/resources.
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 www.SIGMAactuary.com/register.
Also, if you would like to discuss any current issues facing your clients or prospects, please contact me at AL@SIGMAactuary.com 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.