Recently I spoke to a friend who told me her sales department [銷售部門] employees do not get paid any commission [佣金]. This is very uncommon and the apparent reason was that the company does not want to stress the employees too much that they would …
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 subdivided by class, currency, territory, major risk groups within a class and such other subdivisions, …
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. Often, the industry loss trigger is fixed, with reference to published information or a known …
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 after the casue of loss. A latent claim is a claim that arises from a risk not anticipated by …
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 generally analyzing the data. The Ultimate Net loss is the loss retained with the company …
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, you need two elements. Total number of claims you have received and the total amount …
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 much the average claim will cost. Frequency severity method uses historical data to estimate the …
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 or Motor TP, are often not paid out immediately. Claims adjusters set initial case reserves for claims; …