As we approach year end, many companies are finalizing details for their 2023 policy renewal. Such policies may include annual aggregate limits (or retentions) on losses retained as part of a company’s self-insured retention (SIR) or deductible. While the per-occurrence retention places a cap on the amount a company retains per claim, the aggregate retention […]
In a recent article published by Captive International, Lori Ussery discusses “10 Quick Ratios to Health-Check Your Captive”. These ratios provide valuable insight into the overall financial viability of a captive and identify areas which may need focused attention. Click to view the article The ratios covered in Lori’s article are often included as part […]
Most companies and their consulting actuaries complete an actuarial analysis annually at minimum in order to assist in determining booked reserves for outstanding losses & LAE in their year-end financial statements. As the estimates are revised year to year, management may seek to isolate and review specific items attributing to any changes in these reserves. […]
Over the past year the SIGMA team has received multiple requests from our clients for more detailed and frequent analysis of loss and loss adjustment expense reserve funding levels. In a recent article published in Captive International, Lori Ussery discusses several key items that risk-bearing companies should monitor throughout the year in order to avoid […]
Prior SIGMA publications have focused on weather risk mitigation and data available for historical windstorms in the Atlantic: https://sigmaactuary.com/2019/01/07/weather-risk-mitigation-analytical-considerations/ https://sigmaactuary.com/downloads/SIGMAWindRisks.pdf These articles mentioned the use of parametric insurance as a mechanism to mitigate the financial impact of weather-related risk and analytical considerations for quantifying these types of risk. In a recent article published in Captive […]
The projection of losses involves estimating the expected or average value of future loss costs. This estimate is based on historical loss experience, adjusted to the current cost level considering both internal influences (such as development, changes in claims reserving, exposure volume and mix of business) and external influences (such as inflation and changes in […]
A recent article written by SIGMA's Michelle Bradley and Lori Ussery and published in Captive International discussed the importance of using analytics to leverage a company’s position with insurers and create new strategies for dealing with a hardening market. View the complete article here. As a follow up to the article, we have created a list […]
Early last year, I visited the USS Midway Museum in San Diego. The museum offers tours of the decommissioned aircraft carrier, led by docents, many of whom served on the USS Midway or another vessel. As I toured the bridge and entered the chart room, the docent recalled the various measures for determining the carrier's […]
Loss simulations and confidence level analyses are important tools when budgeting for projected losses in the upcoming year. The projected loss pick determined by an actuary provides the expected or average value of losses, but it is also important to understand the volatility around the projected losses or to compare the effects of various per-occurrence […]