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. …
Career as an Actuary in India and Actuarial Syllabus
How to become an Actuary: Actuary in India The Institute of Actuaries of India (IAI) regulates the education & training of actuaries in India. When a student becomes a member …
Introduction of Run Off Triangles in Reserving
When a claim event occurs there will be some time before it is reported or notified to the insurer – this is known as a claim delay. The insurer will …
Decoding Earned Premiums & Unearned Premium Reserves (UPR): A Comprehensive Guide to Calculation and Methods
What Is Unearned Premium? Unearned premium is the premium which is corresponding to the time period remaining on an insurance policy. These are proportionate to the unexpired portion of the insurance premium paid and …
Introduction: Incurred But Not Reported (IBNR Reserves)
Incurred But Not Reported or IBNR reserves are a part of claims reserves estimated by insurers for reporting on their financial statements. Claims reserves are estimates of claims that have …
2018/2019 CPD activity year ends 30 June 2019
A reminder to all members in categories 2-6 that the continual professional development (CPD) reporting year will end on 30 June 2019. All CPD activity for 2018/2019 must be completed …
UK Institute and Faculty of Actuaries Council members to hold to join national conference in Kenya
Early next month, Council members from the UK Institute & Faculty of Actuaries (IFoA) will be holding one of its quarterly meetings in Africa. In what will be a first …
Revised Actuaries’ Code and Guidance comes into force
Since the Actuaries’ Code first came into effect in 2008, the actuarial profession has moved into more diverse fields and the number of members working outside the UK has increased. …
Mack Method in Stochastic Reserving: Estimating Standard Errors in Chain Ladder Reserving
Understanding the Mack Method for Estimating Chain Ladder Uncertainty Thomas Mack, in his original paper, introduced a method to estimate the standard error associated with chain ladder estimates. This method, …
Actuaries Climate Index data for Fall 2018 Released Using Improved Methodology
WASHINGTON and ARLINGTON, Va. and SCHAUMBURG, Ill. and OTTAWA, May 07, 2019 (GLOBE NEWSWIRE) — Organizations representing the actuarial profession in Canada and the United States have applied an improved …