Current actuarial standards of practice indicate that multiple actuarial methods should be used to determine the estimated ultimate losses when completing an actuarial analysis of unpaid claim liabilities. One source of guidance related to actuarial methods and models is Actuarial Standard of Practice 43 (ASOP 43), particularly in Section 3.6.1. For example ASOP 43 states […]
Through a series of blogs, SIGMA has begun to address some common questions, requirements and issues based on our previous experience with clients and auditors. The first blog in the series focused on actuarial qualifications and an actuarial qualification statement. This blog will focus on auditor inquiries related to actuarial independence. The interaction with auditors, […]
Decisions about risk financing are often made using one assumption about the retained losses, or at best, using a range of claims. Claims costs for future periods are a forecast that will vary to some degree. The amount of that variation is measured by estimating the confidence interval based on the probability distribution calculated from […]
As a follow up to our blog "Q&A with Amethyst" on April 23rd, we promised a Captive Assessment Tool would be added to the portal. This was completed just in time for the Vermont Captive Insurance Association conference (August 7th – 9th). If you are going to be attending VCIA’s 2012 conference, please be sure […]
In the last quarter of 2011, SIGMA Actuarial Consulting Group conducted a survey of insurance brokers, risk management consultants, and risk management staff of self-funded concerns to participate in a survey regarding collateral. This survey was similar to the ones conducted by SIGMA in 2009 and 2010. The goal of the survey was to assess, […]
Actuarial projects/consulting engagements do not always end with the issuance of the final report. Actuaries, and the clients who engage them, spend a significant amount of time and energy explaining the actuarial methodologies and calculations contained in an actuarial report such as an actuarial reserve analysis. A company may have to spend significant time facilitating […]
Happy New Year! This is the first blog of 2012 and it is short and sweet. This blog is to announce a new tool we have in our portal at www.SIGMAactuary.com/resources called the LDF Interpolator. While at first glance the title of this blog might suggest a science fiction movie or some new Star Trek […]
In the SIGMA Tech Talk titled “Understanding Loss Development Factors,” we introduced IBNR losses as those losses which occur during a loss period but are not reported until a later date. The definition of IBNR also typically includes development of known claims. In this article, we look further at the significance and calculation of IBNR […]
I wear a lot of hats here at SIGMA and the one that I enjoy the most is the role of teacher and communicator. I am always looking for an opportunity to support our agents/brokers with communication and educational materials. When I hear about a concept that is difficult for our clients to grasp, I […]
SIGMA Actuarial Consulting Group, Inc. invites insurance brokers, risk management consultants, and risk management staff of self-funded concerns to participate in our 2011 collateral survey. The survey takes about 5 minutes to complete and will be available through November. Afterwards the results will be shared with our survey participants. As an added bonus, participants can […]