Actuaries will use multiple actuarial methods to determine the estimated ultimate losses when completing an actuarial analysis of unpaid claim liabilities. The Bornhuetter-Ferguson (B-F) method and the development methods (also known as chain ladder methods) are two of the most popular claims reserving methods. In this blog post, we will take a look at the […]
Many companies don’t believe that their retained liabilities are big enough or complex enough to warrant hiring an actuary. Therefore, internal calculations are often completed using spreadsheets or various software tools. In some situations, these calculations may give a reasonable range of retained liabilities. However, the magnitude of the losses, the number of years involved, […]
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 […]
What is silent evidence? How can I look for it? What benefit does it provide? As technology advances, companies are continuing to get better and better at capturing, manipulating, and examining data. One of the many results of this improvement is that the ability to differentiate your approach to risk management from others is gradually […]
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 In our last post, we spent a bit of time dealing […]
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 […]
Seeing the Big Picture While a loss pick or point estimate produced from accurate analysis by an experienced actuary is valuable information, its usefulness is tempered by the likelihood of how accurate the estimate is. That is, from a statistical standpoint, the loss pick has a certain probability of being correct. That probability, measured in a confidence interval, is […]