Posts Tagged ‘Jenkins (Victoria)’



September 13th, 2015

Guy Carpenter Examines Emerging Risks Impacting the (Re)insurance Industry

Posted at 9:30 PM ET

Guy Carpenter today published a new report, A Clearer View of Emerging Risks, which examines four key areas where risks continue to emerge or are largely unknown.

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September 14th, 2014

Cyber, Terrorism and New Compensation Structures Highlighted as Critical Emerging Risks

Posted at 10:30 PM ET

2014-sep-emerging-risk-cover-image-crGuy Carpenter today published a new report highlighting emerging risks facing the (re)insurance sector, including cyber-attacks, terrorism and new compensation structures for long-term bodily injuries. The report seeks to identify and categorize these risks that are now confronting the sector, as well as analyze their implications on businesses and (re)insurers.

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June 16th, 2014

The Total Value of Reinsurance for Long-Tail Business

Posted at 1:00 AM ET

victoria-jenkinsleong-jessica-bio-sep-2013Victoria Jenkins, Managing Director, and Jessica Leong, Lead Casualty Specialty Actuary

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Can we learn from Solvency II to unlock the hidden value of reinsurance for long-tail business?

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June 10th, 2014

Enhancing Catastrophe Modeling In the Middle East and North Africa

Posted at 1:00 AM ET

victoria-jenkinsVictoria Jenkins, Managing Director

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The Middle East and North Africa (MENA) region is acknowledged to be a key growth area for (re)insurance. Insurance penetration is rapidly increasing but still has some way to go to reach comparable levels with Europe or the United States. In the period 2003-2012, most countries in the region achieved triple-digit percentage increases in premium volume, with some exceeding 600 percent growth (source: Swiss Re Sigma).

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May 29th, 2014

Europe Embraces Annuity Settlements for Bodily Injury

Posted at 1:00 AM ET

Here we review GC Capital Ideas entries highlighting Europe’s embrace of periodic payment orders over traditional lump sum payments for the settlement of bodily injury claims.

Time Off for Certain Behavior: The Courts Act of 2003 fundamentally changed the way that catastrophic injury claims are settled by insurers. It gave the courts the power to enforce a periodic payment order (PPO) as compensation instead of an upfront lump sum payment. A PPO is an annuity payment from the insurer to the claimant, and is designed to cover ongoing care costs, loss of earnings and other expenses associated with the injuries sustained for the rest of the claimant’s lifetime.

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Chart: Prevalence of Annuity Settlements in Europe: For bodily injury claim settlements in Europe, the trend is shifting away from lump sums and towards annuity-type settlements, which come with risks related to longevity, inflation and hedging.

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April 23rd, 2014

Periodic Payment Orders

Posted at 1:00 AM ET

Here we bring together the GC Capital Ideas two part series on periodic payment orders authored by Victoria Jenkins: 

Time Off for Certain Behavior, Part I: Behavioral economics is a fascinating field and one which actuaries should be aware of in their everyday work. It is the study of inherent biases in human decision-making. Many examples of these biases have been cited in connection with the financial crisis, and increasingly the implications for insurance are being examined.

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Time Off for Certain Behavior, Part II: Our experience in doing this has led to an “actuarial hunch” that PPO claims converted to their Ogden equivalents are not from the same underlying statistical distribution as traditional lump sum values. Fitting severity distributions to these claims in among the traditional lump sums can feel a bit like fitting to “apples and oranges.”

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March 19th, 2014

Time Off for Certain Behavior, Part II

Posted at 1:00 AM ET

victoria-jenkinsVictoria Jenkins, Managing Director

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On a Hunch

Our experience in doing this has led to an “actuarial hunch” that PPO claims converted to their Ogden equivalents are not from the same underlying statistical distribution as traditional lump sum values. Fitting severity distributions to these claims in among the traditional lump sums can feel a bit like fitting to “apples and oranges.”  On comparing claimants with similar injuries, claims settled more recently as a PPO, revalued to an Ogden basis, just seem to be more expensive than claims that were settled a few years ago prior to the arrival of PPO settlements. This difference persists even after adjusting for inflation and after adjusting for the fact that it is often the larger claims that settle as a PPO. If our observation turns out to be true, excess of loss reinsurance pricing could have an implicit double loading. First, in the inclusion of these claims in the original lump sum severity curve fitting process (including the derivation of the development pattern applied to lump sums) and second, in the PPO loading applied afterwards. Similarly this sort of distortion could affect the parameterization of capital models for classes of business that have experienced PPO claims.

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March 18th, 2014

Time Off for Certain Behavior, Part I

Posted at 1:00 AM ET

victoria-jenkinsVictoria Jenkins, Managing Director

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Behavioral economics is a fascinating field and one which actuaries should be aware of in their everyday work. It is the study of inherent biases in human decision-making. Many examples of these biases have been cited in connection with the financial crisis, and increasingly the implications for insurance are being examined. In a speech entitled ‘The Human Face of Regulation’ in April 2013, Martin Wheatley, chief executive of the Financial Conduct Authority (FCA), explained how the FCA is going to use the principles of behavioral economics in the protection of the consumer (see www.fca.org.uk/news/speeches/human-face-of-regulation).

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February 24th, 2014

Guy Carpenter Launches Satellite-based Catastrophe Evaluation Service

Posted at 11:30 PM ET

Guy Carpenter today launched its new satellite-based catastrophe evaluation service, GC CAT-VIEWSM, with the announcement that it has started using the service to provide clients affected by the recent UK floods with initial insured loss estimates.

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