RE: Assessing the solvency and financial strength of a general insurance company, (JIA 114, 227) - Reply by C. D. Daykin et al

1987 ◽  
Vol 114 (3) ◽  
pp. 608-609
Author(s):  
C. D. Daykin ◽  
G. D. Bernstein ◽  
S. M. Coutts ◽  
E. R. F. Devitt ◽  
G. B. Hey ◽  
...  
Keyword(s):  
Insurance Company ◽  
General Insurance ◽  
Financial Strength

The Solvency of a General Insurance Company in Terms of Emerging Costs

1987 ◽  
Vol 17 (1) ◽  
pp. 85-132 ◽  
Author(s):  
C. D. Daykin ◽  
G. D. Bernstein ◽  
S. M. Coutts ◽  
E. R. F. Devitt ◽  
G. B. Hey ◽  
...  
Keyword(s):  
Balance Sheet ◽  
Insurance Companies ◽  
Insurance Company ◽  
True Nature ◽  
Financial Position ◽  
General Insurance ◽  
Financial Strength ◽  
Margin Requirement ◽  
New Business ◽  
A Company

AbstractThe authors challenge the traditional balance sheet concept of the solvency of a general insurance company and put forward an emerging costs concept, which enables the true nature of the assets and liabilities to be taken into account, including their essential variability. Simulation is suggested as a powerful tool for use in examining the financial strength of a company. A simulation model is then used to explore the resilience of a company's financial position to a variety of possible outcomes and to assess the probability that the assets will prove adequate to meet the liabilities with or without an assumption of continuing new business. This suggests the need for an appropriate asset margin assessed individually for each company. The implications for the management and supervision of general insurance companies are explored. The suggestion is made that the effectiveness of supervision based on the balance sheet and a crude solvency margin requirement is limited. More responsibility should be placed on an actuary or other suitably qualified professional individual to report on the overall financial strength of the company, both to management and to the supervisory authorities.

scholarly journals Chain claims reserving methods in non-life insurance

2019 ◽  
Vol 1 (1) ◽  
pp. 216-225
Author(s):  
Aurora Elena Dina Manolache
Keyword(s):  
Life Insurance ◽  
Curve Fitting ◽  
Insurance Industry ◽  
Insurance Company ◽  
Industry Standard ◽  
Tail Development ◽  
General Insurance ◽  
Financial Strength ◽  
Life Insurer ◽  
Chain Ladder

Abstract Considering that the reliability of reserves valuation directly influences the financial strength of an insurance company, the main aim of this paper is to present a claims reserving estimation for a Romanian non-life insurer based on the most popular chain methods which are typically used in practice for the estimation of outstanding claims reserves in general insurance industry: Standard Chain Ladder and Munich Chain Ladder both on the claims incurred data and claims paid data. The tail development factors have been estimated based on the curve-fitting methods. The obvious advantage of these methods is represented by its simplicity of the practicality application. The results of the research under two chain claims reserving models reveal significant differences between the Standard Chain Ladder and Munich Chain Ladder with respect to the claims reserves level. Probably the Standard Chain Ladder based on paid method underestimates the outstanding loss liabilities and Standard Chain Ladder based on Incurred method overestimates the claims reserves. The claims reserves predictions under the Paid Munich Chain Ladder and Incurred Munich Chain Ladder are between the two Standard Chain Ladder outstanding loss liabilities estimates. The results of the tail extrapolation shown that the incorporation of the tail factors can have a significant impact on claims predictions.

Assessing the solvency and financial strength of a general insurance company

1987 ◽  
Vol 114 (2) ◽  
pp. 227-325 ◽  
Author(s):  
C.D. Daykin ◽  
G.D. Bernstein ◽  
S.M. Coutts ◽  
E.R.F. Devitt ◽  
G.B. Hey ◽  
...  
Keyword(s):  
Balance Sheet ◽  
Insurance Companies ◽  
Insurance Company ◽  
True Nature ◽  
General Insurance ◽  
Financial Strength ◽  
Margin Requirement ◽  
Alternative Scenarios ◽  
The Impact ◽  
A Company

AbstractAfter reviewing some general issues concerning solvency and the problems associated with establishing the financial strength of a general insurance company using the traditional balance sheet concept, the authors put forward an emerging costs approach for examining the strength of a company. This enables the true nature of the assets and liabilities to be taken into account, including their essential variability. Simulation is suggested as a powerful tool for use in examining the financial strength of a company and in exploring the impact of alternative scenarios. A particular example of such a simulation model is then presented and used to explore the resilience of a company's financial position to variations in a wide variety of parameters. The model enables the user to quantify the probability that the assets will prove adequate to meet the liabilities with or without an assumption of continuing business. This in turn permits an appropriate asset margin to be assessed individually for any particular company in the light of the strategy that the company intends to follow. Some of the implications of this approach for the management and supervision of general insurance companies are explored. The suggestion is made that the effectiveness of statutory supervision based on the balance sheet and a crude solvency margin requirement is limited, since it cannot have proper regard to the risk profile of individual companies. More responsibility should be placed on an actuary or other suitably qualified professional individual to report on the overall financial strength of the company, both to management and to the supervisory authorities.

Managing uncertainty in a general insurance company

1990 ◽  
Vol 117 (2) ◽  
pp. 173-277 ◽  
Author(s):  
C. D. Daykin ◽  
G. B. Hey
Keyword(s):  
Computer Model ◽  
Flow Model ◽  
Insurance Companies ◽  
Simulation Methods ◽  
Insurance Company ◽  
Practical Applications ◽  
General Insurance ◽  
Alternative Approaches ◽  
The Impact

AbstractA cash flow model is proposed as a way of analysing uncertainty in the future development of a general insurance company. The company is modelled alongside the market in aggregate so that the impact of changes in premium rates relative to the market can be assessed. An extensive computer model is developed along these lines, intended for use in practical applications by actuaries advising the management of genera1 insurance companies. Simulation methods are used to explore the consequences of uncertainty, particularly in regard to inflation and investments. Some comments are made on the role of actuaries in general insurance. Alternative approaches to describing the behaviour of an insurance firm in the market are considered.

scholarly journals Mengukur Kontribusi Human Capital terhadap Tujuan Perusahaan

2010 ◽  
Vol 1 (2) ◽  
pp. 388
Author(s):  
Brata Wibawa Djojo
Keyword(s):  
Human Capital ◽  
Human Resources ◽  
Economic Value ◽  
Value Added ◽  
Insurance Company ◽  
Economic Value Added ◽  
General Insurance ◽  
Factor Ii ◽  
Capital Value ◽  
Capital Return

Human capital is a valuable asset of any company, especially for competent human resources and contributes both to the company. The performance evaluation given to employees annually can be defined and standardized by the company. However, the question is how big the contribution of human resources to sales and profit contribution is. Case studies take data from one branch of a general insurance company in Indonesia, Jakarta branch. Measurement is done by taking samples of data from 2007, 2008, and 2009. The study measures the risk of several components: (i) Human Capital Revenue Factor, (ii) Human Economic Value Added, (iii) Human Capital Cost Factor, (iv) Human Capital Value Added, and (v) Human Capital Return on Investment. Results of research can provide guidelines for the management, especially for management of JLI in view of Human Capital contribution to corporate objectives, namely in terms of staffing and agency. 

The Solvency of a General Insurance Company in Terms of Emerging Costs

1989 ◽  
pp. 87-149 ◽  
Author(s):  
C. D. Daykin ◽  
G. D. Bernstein ◽  
S. M. Coutts ◽  
E. R. F. Devitt ◽  
G. B. Hey ◽  
...  
Keyword(s):  
Insurance Company ◽  
General Insurance

Determinants of United Kingdom General Insurance Company Performance

2004 ◽  
Vol 10 (5) ◽  
pp. 1079-1110 ◽  
Author(s):  
Y. Shiu
Keyword(s):  
United Kingdom ◽  
Panel Data ◽  
Performance Measures ◽  
Panel Data Analysis ◽  
Ordinary Least Squares ◽  
Insurance Companies ◽  
Company Performance ◽  
Insurance Company ◽  
Data Set ◽  
General Insurance

ABSTRACTDynamic financial analysis has become one of the important tools that actuaries use to model the underwriting and investment operations of insurance companies. The first step in carrying out the analysis is to investigate the most important factors affecting company performance. This paper identifies the determinants of the performance of United Kingdom general insurance companies using a panel data set consisting of economic data and Financial Services Authority/Department of Trade and Industry returns over the period 1986 to 1999. Three performance measures are used to capture different aspects of insurance operations. These measures are related to a number of economic and firm specific variables, chosen on the basis of relevant theory and literature. An ordinary least squares regression model and two panel data models are estimated for each of three performance measures. This paper also addresses several important econometric problems that are usually ignored in applied work in the context of panel data analysis. Based on the empirical results, this study finds that liquidity, unexpected inflation, interest rate level and underwriting profits are statistically significant determinants of the performance of U.K. general insurers.

History of Life Assurance in the United Kingdom (Continued)

1886 ◽  
Vol 26 (2) ◽  
pp. 120-132 ◽  
Author(s):  
Cornelius Walford
Keyword(s):  
United Kingdom ◽  
Insurance Company ◽  
Life Assurance ◽  
The United Kingdom ◽  
General Insurance ◽  
Bank Of England ◽  
History Of ◽  
Friendly Societies

Globe Insurance Company.—Early in the year 1799 a plan was laid before Mr. Pitt for forming a Chartered Insurance Office, for granting Insurance against Fire, and for Insurance of Lives; for buying and selling Annuities, and for receiving deposits from Friendly Societies, and the Industrial Classes: to be called the Globe or General Insurance Office. It was understood that the plan received that Minister's approval, and a Bill was introduced to Parliament embodying these objects. The measure encountered some opposition. In the first place, the Bank of England objected to the Deposit branch, and the clauses relating thereto were accordingly struck out. Then it was opposed by several of the Insurance Offices; but the Bill finally passed through both Houses, and received the Royal Assent.

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