Difference between revisions of "Friedland04.Meetings"
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| − | When I first started working at National General in NC, our written premiums for auto suddenly began rising by 20-30% in many states. We were like, what in the world is going on? We couldn't just start in on the analysis without without investigating that. Well, it turned out that many product managers had relaxed the underwriting criteria in their state specifically because they wanted to write more business. ''(The new bonus program rewarded premium growth.)'' Obviously that information has to be factored in to how we doing the analysis. | + | When I first started working at National General in NC, our written premiums for auto suddenly began rising by 20-30% in many states. We were like, what in the world is going on? We couldn't just start in on the analysis without without investigating that. Well, it turned out that many product managers had relaxed the underwriting criteria in their state specifically because they wanted to write more business. ''(The new bonus program rewarded premium growth.)'' Obviously that information has to be factored in to how we doing the analysis. ''(Spoiler: The losses began rising about 6 months later.)'' |
That means you have to understand what's going on in the different operational areas of your company: | That means you have to understand what's going on in the different operational areas of your company: | ||
Revision as of 14:48, 30 May 2020
Reading: Friedland, J.F., Estimating Unpaid Claims Using Basic Techniques, Casualty Actuarial Society, Third Version, July 2010. The Appendices are excluded.
Chapter 4: Meeting with Management
Pop Quiz
Study Tips
BattleTable
Based on past exams, the main things you need to know (in rough order of importance) are:
- fact A...
- fact B...
reference part (a) part (b) part (c) part (d)
In Plain English!
Here is the point of this chapter:
To do a reserve analysis properly, you need more than just the data. You have to know what's going on within your company.
When I first started working at National General in NC, our written premiums for auto suddenly began rising by 20-30% in many states. We were like, what in the world is going on? We couldn't just start in on the analysis without without investigating that. Well, it turned out that many product managers had relaxed the underwriting criteria in their state specifically because they wanted to write more business. (The new bonus program rewarded premium growth.) Obviously that information has to be factored in to how we doing the analysis. (Spoiler: The losses began rising about 6 months later.)
That means you have to understand what's going on in the different operational areas of your company:
- claims
- U/W (Underwriting)
- data processing
- accounting
- ratemaking
The source text lists about 5 million different questions you might ask management in these areas, but you don't have to memorize them. Alice suggests taking 10 minutes to scan the list of questions in the text and picking out 1 question from each category to memorize.
