Posts Tagged ‘Legislation’



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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October 23rd, 2013

Guy Carpenter Insights on A.M. Best’s 2013 Updates

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snyder_jack_bioJack Snyder, Managing Director

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A.M. Best has recently issued several insurance ratings updates. Guy Carpenter has reviewed those updates and has key insights to help companies better understand their potential impact.

 

 

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May 6th, 2013

Recent Terrorism Stories on GC Capital Ideas

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Here we review recent GC Capital Ideas stories that cover terrorism. 

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April 23rd, 2013

Italian Court Decision Encourages Strict Compliance with Industrial Safety Regulations

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On December 12, 2007, there was a fire in an industrial plant in Turin that was owned and managed by ThyssenKrupp Acciai Speciali Terni S.p.a. (ThyssenKrupp), an Italian subsidiary of ThyssenKrupp Stainless group. The violent fire occurred in a cold annealing and pickling line, called APL5, where there is typically a significant amount of lubricant oil and paper, as well as sparks generated by the plant’s industrial process.

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April 11th, 2013

Legislation Surrounding Insurance Covering Terrorist Acts

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Here we review past GC Capital Ideas stories that have focused on legislation surrounding insurance covering terrorist acts.

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April 8th, 2013

Reevaluation of Terrorism Risk and Coverage Prompted by Global Unrest and Political Instability

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The dramatic rise in political instability and civil unrest across the globe, including uprisings in the Middle East and protests in Greece and Spain, has triggered a significant shift in the nature of terrorism risk and has highlighted the need for tailored terrorism and political violence protection, according to  “Tensions Building: the Changing Nature of Terrorism Risk and Coverage,” by Guy Carpenter.

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March 11th, 2013

Germany: Breach of Contractual Incidental Obligation Due to Gross Negligence Can Release Insurer from Obligation to Pay

Posted at 1:00 AM ET

The Insurance Contract Act (Versicherungsvertragsgesetz, VVG) contains provisions about risk exclusions and incidental obligations. A risk exclusion means the insurer does not provide insurance cover for a specified excluded risk, and in cases of an incidental obligation, the policyholder loses insurance cover if he/she does not observe the specified incidental obligation.

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January 31st, 2013

Criminal Liability of Companies Under Spanish Law: What is the Real Impact on Directors & Officers Coverage?

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Recent Trends

The financial crisis has triggered a number of criminal investigations against companies and their directors. In light of these developments, this section provides an overview of the recently introduced Spanish regulation concerning criminal liability of companies and the real impact this reform will have on directors and officers (D&O) policies.

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