Guy Carpenter and its sister company, Oliver Wyman, the international management consulting firm, published the third annual Insurance Risk Benchmarks in September of 2013. We highlight the report here again.
Posts Tagged ‘Leong (Jessica)’
Jessica Leong, Lead Casualty Specialty Actuary
In 2012 the insurance industry enjoyed more reserve releases, but many sources say that the releases of the last decade will soon run out. But when? Most insurance commentary reports on the reserve cycle but does not often attempt to explain why it exists. If we can understand the drivers of the cycle, we can do better in predicting where we are and where we are going.
Guy Carpenter’s Donald Mango and Jessica Leong Elected to the Board of the Casualty Actuarial Society
Guy Carpenter announced that Donald F. Mango, Vice Chairman and Head of Enterprise Analytics, and Jessica Leong, Lead Casualty Specialty Actuary, have been elected to the board of directors of the Casualty Actuarial Society.
Guy Carpenter and its sister company, Oliver Wyman, the international management consulting firm, have published the third annual Insurance Risk Benchmarks.
Victoria Jenkins, Managing Director, and Jessica Leong, Lead Casualty Specialty Actuary
Can we learn from Solvency II to unlock the hidden value of reinsurance for long-tail business?
Reinsurance on a long-tail business such as casualty provides lasting capital benefits until the complete run off of the underlying business. It not only reduces underwriting risk, but also the future reserve risk for that book of business. Yet how many companies are properly considering this multi-year capital relief in their reinsurance decision-making? Solvency II’s one-year risk horizon has the potential to draw attention away from the multi-year risk compared to the current Individual Capital Assessment regime. The complexity of creating a comprehensive multi-year capital model means that in our experience many companies are not focusing on the multi-year risk of long-tail business when considering their reinsurance strategy.
The lines have begun to show deteriorating results in the most recent accident years.
By extrapolating reserving trends, it may be possible to assess the sector’s reserve adequacy. Two cyclical patterns are clear.
- The cycle turned on an accident year basis in 2004. Industry-wide accident year deterioration now appears imminent.
- Guy Carpenter’s view of the cycle shows that over the last 30 years, accident years that begin to show deteriorating results continue to deteriorate.
Guy Carpenter has published its second annual Insurance Risk Benchmarks, a resource designed to help insurers assess risk parameters and improve economic capital modeling. The report provides benchmarks for underwriting and reserve risk by line of business and by industry segment for U.S. exposures, and can be used by insurers when benchmarking their economic capital models.
November 12, 2012: Guy Carpenter & Company announces that three members of its actuarial team have been awarded the 2011 Variance Prize for thought leadership in risk valuation, underwriting cycle modeling and risk benchmarks for the property-casualty market. The prize recognizes the best papers published to Variance, the scientific journal of the Casualty Actuarial Society.