The keys to a reliable actuarial analysis are good data and reasonable underlying assumptions for the program being analyzed. Therefore, any information regarding the insurance program which could materially affect the analysis should be provided to your actuary.   The two most common types of actuarial reports are the loss projection analysis and a reserve analysis. […]

Large deductible policies provide companies the opportunity to reduce their insurance premiums in exchange for a portion of the retained losses from a covered risk. In some cases, the amount retained by an insured is based on costs from individual claims or occurrences, but it might also be based on the total cost of claims […]

Quarterly or semi-annual actuarial reports can help eliminate year-end surprises and manage overall financial reporting. This may be particularly helpful if your company has had significant changes during the year such as growth, acquisitions, divestitures, changes in third party claims administrators, or shifts in geographic exposures. Last year, we provided several tips for completing a […]

Today we are joined by Chairman and CEO of 1970 Group, Stephen Roseman, CFA. With over 25 years of securities, investment management and insurance industry experience, Stephen is a perfect candidate for a discussion on collateral. We hope you enjoy his insight as much as we do.   Q1: What collateral trends are you currently […]

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 […]

Fifteen years ago, Tim Coomer created “An Actuarial Advantage” with the goal of educating his fellow insurance colleagues on actuarial concepts and methodology. With well over 100,000 copies of the book now in circulation, we are excited to publish a new edition marking the 15th Anniversary of its initial release. Even in light of the […]

Over ten years ago, Tim Coomer developed the “Cone of Uncertainty” graphic and wrote a corresponding article on the decisions surrounding risk assumption and retention levels. When Tim heard about concepts that SIGMA’s clients struggled to comprehend, he would often prepare a “one pager” to add to our educational resource library. The “Cone of Uncertainty” […]

When to Use a Pure Loss Rating Matrix When insureds are considering how to fund estimated liabilities for a future period, they will often use a loss projection and confidence interval to determine adequate funding. For company XYZ, Inc. projected workers compensation losses for the 2023 policy year can be seen below. XYZ. Inc.2023 Aggregate […]

At the end of 2021, we offered guidance on preparing for a year-end actuarial analysis. June is now here, and many companies are considering a mid-year actuarial report for retained liabilities and prospective loss projections.  Quarterly or semi-annual actuarial reports can help eliminate year-end surprises and manage overall financial reporting. This may be particularly helpful […]

Calculating a benchmark loss projection for workers compensation requires two key pieces of data:  loss costs and payroll, each broken down by state and class code.  While payroll amounts are typically available to companies from internal sources, loss cost information must be gathered externally. Currently, thirty-four states around the US engage NCCI as their advisory […]