Loss Development Factors: A Primer for Captives

Michelle Bradley, ACAS, MAAA, ARM, CERA, CCIS, Consulting Actuary and Enoch Starnes, ACI, Captive and Complex Risk Consultant

Michelle Bradley and Enoch Starnes recently authored an article for Captive International titled “Loss Development Factors: A Primer for Captives”. In it, they summarize the basic attributes of loss development factors, discuss their impact on retained risk, and respond to common questions regarding their use.

While the SIGMA team has written in the past about the ways in which one might track loss development for captives, we believe an opportunity has presented itself to acquaint new entrants to the captive insurance landscape with one of the core concepts that must be understood when retaining risk at any level: Loss Development Factors.

Click to view the article

SIGMA’s An Actuarial Advantage book provides a summary of Loss Development Factors, and discusses how they are a critical part of any actuarial analysis. While the process of determining these factors is often misunderstood, An Actuarial Advantage proves to be a vital resource for interpreting Loss Development Factors, Loss Development Triangles, and even IBNR.

Click to request a PDF or printed copy

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

© SIGMA Actuarial Consulting Group, Inc.

Leave a Reply

Your email address will not be published.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

Archives

Recent Posts

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
Adapting Your Captive for a Shifting Risk Landscape
In a recent article published by Captive International, Michelle Bradley and Enoch Starnes discuss, “Adapting Your Captive for a Shifting Risk Landscape". In it, they examine how a company’s risk profile can shift dramatically and without any warning. The impact of a global pandemic, a rising ...
Read More
Navigating Legislative Changes for Healthcare Entities
January is here, and with it comes the need for many companies to complete their annual actuarial report for retained liabilities. If the past several years are any indicator, legislative changes and social inflation could significantly impact the loss reserves and projections prepared in these repo...
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