Reconciling Reserve Changes Video

Tony King

An actuarial reserve analysis examines a program’s loss-sensitive policy years in order to calculate a required reserve estimate for all claims incurred as of the evaluation date. This reserve estimate is a key component in determining collateral for self-insured and large deductible programs.

Since individual reserve estimates are evaluated at a specific point in time, the estimates will continuously change as payments are made and new claims are incurred. When comparing reserve estimates from two different evaluation dates (perhaps quarter or year-end), a reconciliation of the estimates may help illuminate any underlying trends and provide a more complete story of the changes. The Reconciling Reserve Changes video provides a solid basis in understanding the “walk” between reserve estimates so that the viewer may better understand and explain why a reserve estimate has changed.

We welcome your feedback by posting a comment or contacting us at support@SIGMAactuary.com.

© SIGMA Actuarial Consulting Group, Inc.

Click to view on RISK66.com

If you are not currently a RISK66 subscriber, signup for our complimentary Education license.

Leave a Reply

Your email address will not be published.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

Archives

Recent Posts

Exploring Loss Development Factors: SIGMA's Comprehensive Resources
In 2011, SIGMA’s Tim Coomer authored a blog titled "Understanding Loss Development Factors” in response to the numerous questions we received on the concept of loss development. Since then, it has become SIGMA’s most viewed blog of all time and continues to receive significant amounts of views...
Read More
Captive Solutions for Complex Risks in the Absence of Extensive Loss History
In a recent article published by Captive International, Sol Feinberg and Enoch Starnes discuss how the captive insurance space serves as an enticing option for entities faced with emerging or complex risks which often have limited amounts of historical data points. While this presents obstacles for ...
Read More
Navigating Premium Deficiency Reserves
SIGMA is pleased to announce the release of our newest educational resource, the Premium Deficiency Reserve Calculation sample. This resource provides an illustrative example of the calculation of a premium deficiency reserve (PDR). A company must record a PDR when the unearned premium of in-force b...
Read More
A Reflection on Data and Analytics for Captives
In a recent article published by Captive International, Michelle Bradley and Enoch Starnes discuss, “A Reflection on Data and Analytics for Captives". In it, they examine the business world’s reliance on data and analytics as decision-making tools, and how it has undoubtedly increased over the p...
Read More

Subscribe to Our Blog



hello world!
Copyright © 2023 – 2024 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