Category Actuarial / Analytics


Assessing the State of the Casualty Insurance Market

George Zanjani – While property losses from natural disasters such as Hurricane Matthew may grab headlines in the insurance press, casualty losses often drive the more significant cyclical disruptions in the U.S. market. Fortunately, casualty reserving for recent policy periods looks relatively healthy, although pressure from falling interest rates is starting to mount. The opening […]


Revolutionary Times in Auto Insurance Pricing

Marty Ellingsworth – For years, auto insurers have used crude miles driven classification schemes in their premium calculations. The logic of crude schemes presumably lay in the difficulties of verification: Carriers didn’t want to spend money on audits and could not fully trust self-reports. This situation is in the process of changing drastically. Technological change […]


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 […]


Are We There Yet? A Review of Liability Reserving

George Zanjani – If you’re in the habit of spending time around insurance brokers, you probably found them a bit cheerier in 2012. “Things are picking up!” was a common refrain I heard throughout the year. Many report higher volumes and firmer prices. Some are even going so far as to call a turn in […]

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