Blog 1: Intro to SIGMA & Scope and Data RequirementsBlog 2: Loss Development FactorsBlog 3: Reserve and Cash Flow AnalysesBlog 4: Trending, Pure Loss Rates, and Loss ProjectionsBlog 5: Confidence Interval and Retention Level AnalysesBlog 6: Loss Cost Analysis Our prior blog post dealt with confidence intervals and retention level analyses, both of which rely heavily on loss projections. To produce […]

Blog 1: Intro to SIGMA & Scope and Data Requirements Blog 2: Loss Development Factors Blog 3: Reserve and Cash Flow Analyses Blog 4: Trending, Pure Loss Rates, and Loss Projections Blog 5: Confidence Interval and Retention Level Analyses Blog 6: Loss Cost Analysis So, we’ve covered the most popular of SIGMA’s offerings, but what about […]

Blog 1: Intro to SIGMA & Scope and Data Requirements Blog 2: Loss Development Factors Blog 3: Reserve and Cash Flow Analyses Blog 4: Trending, Pure Loss Rates, and Loss Projections Blog 5: Confidence Interval and Retention Level Analyses Blog 6: Loss Cost Analysis Now that we understand the data necessary for an actuarial analysis […]

Blog 1: Intro to SIGMA & Scope and Data Requirements Blog 2: Loss Development Factors Blog 3: Reserve and Cash Flow Analyses Blog 4: Trending, Pure Loss Rates, and Loss Projections Blog 5: Confidence Interval and Retention Level Analyses Blog 6: Loss Cost Analysis In our previous blog post, we covered one of the first steps in creating […]

Cyber risk is likely the most significant property casualty risk to emerge in recent times. Premiums for cyber risk are growing significantly, and daily headlines bring attention to yet another major data breach affecting an entity. Most of us with credit cards have probably had new cards issued because of a breach in the last […]

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 […]

I spent some time this week outlining a concept for my PhD dissertation. It concerns the decision process related to selecting a workers compensation large deductible policy. I’m still a long ways from getting a formal proposal written, but I loved the brainstorming this effort created in the office this week. If you work with […]

This blog introduces a graphic that shows the pieces that make up “Ultimate Losses.”  The ultimate losses of a policy period will typically not be known for many years.  Actuaries are hired to estimate ultimate losses to help a company use appropriate reserve amounts for planning and financial statement purposes. Here are some definitions for […]

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 […]

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: […]