Presentation is loading. Please wait.

Presentation is loading. Please wait.

Casualty Loss Reserve Seminar Washington, DC September 17-18, 2008 Intl1: International Reserving Issues Stewart Mitchell INSTRUCTIONS This template is.

Published byLillian Daniel Modified over 8 years ago

Similar presentations

Presentation on theme: "Casualty Loss Reserve Seminar Washington, DC September 17-18, 2008 Intl1: International Reserving Issues Stewart Mitchell INSTRUCTIONS This template is."— Presentation transcript:

1 Casualty Loss Reserve Seminar Washington, DC September 17-18, 2008 Intl1: International Reserving Issues Stewart Mitchell INSTRUCTIONS This template is designed for onscreen presentations and printed handouts only. The template provides the option of either a grey or white background. How to change colour palette: Format menu > Slide Design… > Color Schemes Choose the desired colour scheme and use the dropdown option to select Apply to All Slides. Guidance on formatting the beam is available in the notes pages of this document.

2 September 17-18, 2008CAS Loss Reserving SeminarPage 2 Reserving from a London Market perspective Agenda ► What is Lloyd's and the London Market? ► Cultural observations on the London Market ► Current reserving issues in the London Market ► Impact of the softening market on reserving INSTRUCTIONS Apply a pattern fill to text slides created with a grey background by changing the design template. How to change design template: Format menu > Slide Design… > Design Template Choose the desired design and use the dropdown option to select Apply to Selected Slides. PATTERNS SHOULD NOT BE USED WITH THE WHITE BACKGROUND Update the Presentation title and Date from the Header and Footer… option from the View menu.

3 September 17-18, 2008CAS Loss Reserving SeminarPage 3 What is Lloyd’s? INSTRUCTIONS Apply a pattern fill to text slides created with a grey background by changing the design template. How to change design template: Format menu > Slide Design… > Design Template Choose the desired design and use the dropdown option to select Apply to Selected Slides. PATTERNS SHOULD NOT BE USED WITH THE WHITE BACKGROUND Update the Presentation title and Date from the Header and Footer… option from the View menu. Straw poll of Lloyd’s  What are your perceptions?

4 September 17-18, 2008CAS Loss Reserving SeminarPage 4 What is Lloyd's? Positive ► 320 year history ► Unrivalled promise to pay claims (1906 San Francisco earthquake) Negative ► Opaque ► Complex

5 September 17-18, 2008CAS Loss Reserving SeminarPage 5 Lloyd’s (of London) ► 17th century coffee shop ► Market not a company ► Landlord and regulator ► Statistics ► 72 Syndicates, 46 Managing Agents ► $14bn capacity ► 40% of income from the US ► 2nd largest surplus lines insurer ► 5th largest global reinsurer

6 September 17-18, 2008CAS Loss Reserving SeminarPage 6 What is the London Market? The London insurance market is a collective term for the insurance companies, including Lloyd's of London, which issue policies out of London. It is a subscription market whereby a number of insurers may well participate in smaller individual shares on each policy. Each insurer's participation on that policy is a separate contract of insurance.

7 September 17-18, 2008CAS Loss Reserving SeminarPage 7 Cultural observations on the London Market ► Subscription market – leader/follower ► Entrepreneurial vs One man band ► The underwriter was king ► ‘Relationship’ underwriting and brokers ► The underwriter is still king ► ‘Embeddedness’ of actuarial skills

8 September 17-18, 2008CAS Loss Reserving SeminarPage 8 Current reserving issues in the London Market ► KRW ► Subprime/credit crunch ► Risk losses in first half of 2008 ► 2008 Hurricane season ► Approaches to reserving: ► Top down ► Bottom up

9 September 17-18, 2008CAS Loss Reserving SeminarPage 9 The insurance cycle ► Key reasons for cycle ► Supply/demand ► Not a perfect market ► Large loss impacts and “pay-back” ► Macro impacts e.g. recession ► Relative attractiveness compared to other investments Profits – top of cycle Losses – bottom of cycle

10 September 17-18, 2008CAS Loss Reserving SeminarPage 10 Impact of the softening market on reserving Our recent survey highlighted: ► Underestimation of rate changes ► Price vs Terms & Conditions

11 September 17-18, 2008CAS Loss Reserving SeminarPage 11 Underestimation of rate changes 73% respondents believe they will underestimate the softening of rates ► New business ► Not all business monitored ► Underwriter ‘optimism’

12 September 17-18, 2008CAS Loss Reserving SeminarPage 12 Price vs Terms & Conditions ► competition on price to date ► competition on T&C going forward ► deductibles ► removal of exclusions ► monitoring the impact of changes in T&C

13 September 17-18, 2008CAS Loss Reserving SeminarPage 13 Impact on reserving Roll forward of loss picks leading to under-reserving? ► Rate MI under cooking true rate reductions ► Changes in T&C not being captured

14 September 17-18, 2008CAS Loss Reserving SeminarPage 14 Any questions?

15 Casualty Loss Reserve Seminar Washington, DC September 17-18, 2008 Thank you

Download ppt "Casualty Loss Reserve Seminar Washington, DC September 17-18, 2008 Intl1: International Reserving Issues Stewart Mitchell INSTRUCTIONS This template is."

Similar presentations

Area Agencies on Aging Insurance and Risk Management Issues by Jeff Cole McNeary Consulting Services.

Area Agencies on Aging Insurance and Risk Management Issues by Jeff Cole McNeary Consulting Services.
Microsoft ® Office Word 2007 Training Header and footer basics Sweetwater ISD presents:

Microsoft ® Office Word 2007 Training Header and footer basics Sweetwater ISD presents:
Insurance Premium Risk, Competition and the Insurance Cycle George Maher.

Insurance Premium Risk, Competition and the Insurance Cycle George Maher.
1 PROVISIONS FOR PROFIT AND CONTINGENCIES (MIS-35) Seminar on Ratemaking Nashville, TNRuss Bingham March 11-12, 1999Hartford Financial Services.

1 PROVISIONS FOR PROFIT AND CONTINGENCIES (MIS-35) Seminar on Ratemaking Nashville, TNRuss Bingham March 11-12, 1999Hartford Financial Services.
Why Lloyd’s?. © Lloyd’s 2007Why Lloyd's?2 The world’s leading specialist insurance market 93% of Dow Jones Industrial Average companies 92% of FTSE 100.

Why Lloyd’s?. © Lloyd’s 2007Why Lloyd's?2 The world’s leading specialist insurance market 93% of Dow Jones Industrial Average companies 92% of FTSE 100.
The Underwriting Cycle Are Loss Reserves Reasonable in Light of Potential Underwriting Cycle Biases? December 2, 2011 PwC Actuarial and Insurance Management.

The Underwriting Cycle Are Loss Reserves Reasonable in Light of Potential Underwriting Cycle Biases? December 2, 2011 PwC Actuarial and Insurance Management.
1 Math 479/568 Casualty Actuarial Mathematics Fall 2014 University of Illinois at Urbana-Champaign Professor Rick Gorvett Session 3: Economics and Insurance.

1 Math 479/568 Casualty Actuarial Mathematics Fall 2014 University of Illinois at Urbana-Champaign Professor Rick Gorvett Session 3: Economics and Insurance.
PRICING ISSUES IN GROUP LIFE ASSURANCE By David Mureriwa 15 April 2015.

PRICING ISSUES IN GROUP LIFE ASSURANCE By David Mureriwa 15 April 2015.
Lloyd’s Strategy 2011-2013 January 2011. © Lloyd’s2 Lloyd’s vision Key Characteristics A subscription market backed by mutual security A broker market;

Lloyd’s Strategy January © Lloyd’s2 Lloyd’s vision Key Characteristics A subscription market backed by mutual security A broker market;
Casualty Loss Reserve Seminar September 23-24, 2002 Surety Bonds – A General Overview By Richard Meyerholz Vice President Underwriting.

Casualty Loss Reserve Seminar September 23-24, 2002 Surety Bonds – A General Overview By Richard Meyerholz Vice President Underwriting.
JUN 8 – 10, 2015 www.bermudacaptive.bm Title Slide JUN 8 – 10, 2015 www.bermudacaptive.bm Getting Employee Benefits and Pension Programs into your Captive.

JUN 8 – 10, Title Slide JUN 8 – 10, Getting Employee Benefits and Pension Programs into your Captive.
McGraw-Hill/Irwin The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. Microsoft PowerPoint 2002 Creating a Custom.

McGraw-Hill/Irwin The Interactive Computing Series © 2002 The McGraw-Hill Companies, Inc. All rights reserved. Microsoft PowerPoint 2002 Creating a Custom.
AAAlexandra Vincenti. © Lloyd’sPresentation name 00 July 20052 Overview of Lloyd’s Origins in a 17 th Century coffee house Home to over 50 managing agents.

AAAlexandra Vincenti. © Lloyd’sPresentation name 00 July Overview of Lloyd’s Origins in a 17 th Century coffee house Home to over 50 managing agents.
Chapter-06 Insurance company operations

Chapter-06 Insurance company operations
Should There Be A National Reinsurance Catastrophe Pool ? May 8, 2006 Mary Z. Seidel Reinsurance Association of America.

Should There Be A National Reinsurance Catastrophe Pool ? May 8, 2006 Mary Z. Seidel Reinsurance Association of America.
The Role of the Actuary in a General Insurance Company Yangon, Myanmar 14 July 2014 Scott Yen.

The Role of the Actuary in a General Insurance Company Yangon, Myanmar 14 July 2014 Scott Yen.
Introduction to Reinsurance Reserving Casualty Loss Reserve Seminar Washington, D.C. September 23, 2002 Bruce D. Fell, FCAS, MAAA Am-Re Consultants, Inc.

Introduction to Reinsurance Reserving Casualty Loss Reserve Seminar Washington, D.C. September 23, 2002 Bruce D. Fell, FCAS, MAAA Am-Re Consultants, Inc.
Pricing Actuaries – Adding Value in a Softening Market Ana Mata, PhD, ACAS Spring CAE Meeting London, 22 May 2008 Mat β las Underwriting and Actuarial.

Pricing Actuaries – Adding Value in a Softening Market Ana Mata, PhD, ACAS Spring CAE Meeting London, 22 May 2008 Mat β las Underwriting and Actuarial.
Brown & Brown Plants Its Flag in the United Kingdom.

Brown & Brown Plants Its Flag in the United Kingdom.
The Actuary In Ceded Reinsurance: Non-Actuarial Considerations CAS Seminar On Reinsurance June 2-4, 2002 Tarrytown, New York Edward P. Lotkowski, FCAS.

The Actuary In Ceded Reinsurance: Non-Actuarial Considerations CAS Seminar On Reinsurance June 2-4, 2002 Tarrytown, New York Edward P. Lotkowski, FCAS.

Similar presentations

Ads by Google