Posts Tagged ‘DRM’



October 26th, 2010

Modeling Capabilities in Europe

Posted at 1:00 AM ET

lefebvre_claude_gcciClaude Lefebvre, Head of GC Analytics European Operations
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Insurance-related catastrophe modeling has undergone a constant evolutionary drive for the past 25 years. The impetus behind the development of cat models began with the realization that large-scale events needed tracking to provide better means of managing insurance exposures to natural disasters.

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September 15th, 2010

Modeling Loss Reserve Risk

Posted at 1:00 AM ET

mango_smallA Conversation with Don Mango, Chief Actuary
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Loss reserves are one of the most difficult risks on insurance companies’ balance sheets. What about loss reserving presents such difficulty?

Loss reserves are essentially forecasts of losses that are going to be paid five, 10 and 15 years from now. Since the future cannot be predicted with perfect accuracy, reserves, of course, are difficult to estimate.

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August 5th, 2010

Long Tail Liabilities and Reserve Volatility: Dynamic Reserve Model (DRMâ„¢)

Posted at 1:00 AM ET

Janis Berger, Managing Director and Spencer Gluck, Senior Vice President
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The convergence of a variety of pressure points at this time is leading to a set of unique circumstances that present opportunities around business strategy and capital allocations for the insurance industry. Future inflation is one of the pressure points. Inflation and uncertainty about its extent and timing is a function of untested but powerful monetary and fiscal policy actions. In addition to inflation’s potential effect on insurer liability management there is also an impact on the volatility of assets backing the liabilities. A reignition of the kind of severe inflation last seen in the 1970s is most likely not factored into any current insurer management practices for establishing reserves or setting capital levels.

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