1 / 10

Reserve Developments and Actuarial Practice

Reserve Developments and Actuarial Practice. Chuck Emma, FCAS, MAAA 2004 Casualty Loss Reserve Seminar September 14, 2004 Las Vegas. Background. Company Failures/Impairments/Downgrades Continuing Reserve Developments Nov. 2003 S&P Article. Questions.

neal
Download Presentation

Reserve Developments and Actuarial Practice

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Reserve Developments and Actuarial Practice Chuck Emma, FCAS, MAAA 2004 Casualty Loss Reserve Seminar September 14, 2004 Las Vegas

  2. Background • Company Failures/Impairments/Downgrades • Continuing Reserve Developments • Nov. 2003 S&P Article

  3. Questions • Are reserve developments a cause, a symptom, or a lagging indicator of the industry’s problems? • Is the SAO serving the industry properly? • What is the role of actuarial practice?

  4. Analysis of Company Developments • $41BB over two years • 30 Largest Developments • 2002: 75% of industry development • 2003: 95% of industry development

  5. Analysis of Company Developments • Where’s This Coming From? • 30-35% Asbestos related • 40% “Reinsurance”, Excess Casualty • 30% includes WC, MM, Mold • 80-85% are from accident years 1997-2001

  6. Analysis of Company Developments • SAO’s • Approximately 50% contain RMAD disclosure • 80% of appointed actuaries are employees • A&E represents approximately 10% of 2003 reserves as stated in the SAO

  7. Analysis of Company Developments • What Does this Mean? • Underlying factors can not be isolated to one or two factors • Public Perception • Management’s responsibility • Actuaries’ responsibility

More Related