Fill in the blanks: The uncertainty inherent in the estimation of _________ implies that a range of ________ can be actuarially sound. Those trained in actuarial science will likely answer “reserves.” That is, in effect, Principle 3 of the Casualty Actuarial Society’s Statement of Principles Regarding Property and Casualty Loss and Loss Adjustment Expense Reserves. [...]
Commercial Lines Analytics
Please join 300 of your peers who’ve already tuned in to our web seminar on our newest commercial property rating initiative — ISO’s Enhanced Wind Rating Program. Joe Palmer, assistant vice president and actuary in Commercial Multi-Line Actuarial, and Bill Chermak, senior technical coordinator in Verisk Commercial Property, spoke about how the program uses wind-related [...]
On October 1, ISO launched our Enhanced Wind Rating Program, a commercial property rating program for the wind peril. You can find all the details on the program in the press release and on the Enhanced Wind Rating Program web page. The program quantifies a building’s resistance and exposure to wind damage. Using wind-related building [...]
Twice a year, I attend Casualty Actuarial Society, where actuaries gather to discuss a wide variety of topics. Some are business-related, but others delve into predictive modeling. Under the latter category, one frequently discussed question is: should actuaries build separate models for frequency and severity, or should they build a single model for loss costs? [...]
Commercial property presents quite a challenge for predictive modelers: How can we rely on models that implicitly assume some degree of homogeneity among risks when we’re dealing with a heterogeneous risk pool of insured locations? For commercial property, the risks range from fruit stands to high-rise office buildings to chemical manufacturing plants. But here’s the [...]
Last year, the ISO team surveyed commercial lines writers, large and small, to learn more about their near-term and long-term predictive modeling initiatives, abilities, and needs. What we gleaned will inform our goals as we ramp up our commercial lines modeling efforts in the second half of 2012. In general, insurers’ commercial lines modeling efforts [...]
