Archives December 2013

Dec
19
2013

Shifting Benchmarks: How Falling Interest Rates Complicate Performance Measurement in Long-Tailed Lines

George Zanjani – Falling interest rates are rendering traditional rule-of-thumb obsolete when evaluating profitability in liability insurance. Performance benchmarks such as the loss ratio need to be adjusted for the fact that fixed income investments return much less than they used to. Appearances can be deceiving. At first glance, liability results seemed quite strong overall […]

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