A few days before, in my organisation, I was given the task to collect CVs’ from the individuals who are interested in an Actuarial internship opportunity. Without any wonder, I …
Importance of Granularity in General Insurance
The first question occur to mind what is granualarity and how is it that important for a General Insurance business? Breaking down Granularity Granularity is subdivision. If the business is …
Industry Loss Warranties – ILWs
This is a short summary explaining Industry Loss Warranties (ILWs). ILW is explained in detailed in Actuarial SP7 subject (formerly ST7). Definition of ILW Industry loss warranties (ILWs) are a type of reinsurance contract where the basis of cover is not indemnity, i.e. repayment of actual losses suffered. Protection is based on the total loss arising from an event to the entire insurance industry rather than individual insured company’s own losses. Trigger Event for ILWs The original size of the industry loss is used as a trigger for eligibility to a recovery. …
Some Questions to prepare for Actuarial Job Interviews
We get a lot of questions to tell you about the Interview Questions that are asked in General Interviews if you have applied for internships or jobs in Actuarial companies …
Latent claims: Claims which insurer not get to decide
What are Latent Claims? Latent Claims derive from the perils that were unforseen when the Insurer wrote the policy and is applied to claims that become known about some years …
Interpreting Key Actuarial Terms and Values
The primary aim is to assess the profitability and financial strength of an Insurance company from its accounts. The key Actuarial terms and values to consider are: Underwriting Profit (Revenue …
Ultimate Net Loss
What is Ultimate Net Loss For Insurer, the loss is when a claim is received. However, that is not the only aspect to consider while calculation of loss reserves or …
Average Severity
Severity refers to the amount you have received Insurance claim for. Average Severity would be the loss associated with an average Insurance claim. Average Severity Calculation To calculate Average Severity, …
Frequency Severity
What is Frequency Severity Method Frequency severity method is an actuarial method for determining the expected number of claims that an insurer will receive during a given time period and how …
Expected Loss Ratio Method (ELR Method)
ELR Method? Expected loss ratio (ELR method) is a technique used to determine the projected amount of claims, relative to earned premiums. This method is used when an insurer lacks …
Actuarial Interview Questions for GI and LI
This is the second article on “Get an Actuarial Job” where we will let you know about some of the Actuarial Interview questions asked generally and guess what, we already …
How to prepare for an Actuarial Job?
The session ended and you are done with your graduation. Now you are looking for a job and thinking about taking next steps on the life ladder. Here we present …
Loss development factors (LDF)
Loss development factors or LDFs are used in insurance pricing and reserving to adjust claims to their projected ultimate level i.e to Ultimate Claims. Insurance claims, especially in long-tailed lines such as liability insurance …
Bornhuetter Ferguson Method (BF Method): A Practical Example in Loss Reserving
When it comes to estimating insurance losses—particularly those not yet reported—actuaries often turn to structured techniques to ensure accuracy and credibility. While the chain ladder method is widely known, the …
Chain Ladder Method (CLM): the most common reserving method and steps to apply
The chain ladder or development method (CLM) is a prominent actuarial loss reserving technique. The chain ladder method is used in both the property and casualty and health insurance fields. …