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  #1  
Old 12-04-2019, 10:14 AM
Noonien Soong Noonien Soong is offline
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Default analysis with direct and net data in schedule P

Parts 2-4 of the schedule P are Net Loss and DCC amounts, such that they are net of reinsurance.

Part 5, all three sections, is on a direct and assumed basis.

So any analysis of incremental or closed claims severity, or average open claim case reserve is distorted right?

Are there meaningful ways to combine Parts 2-4 and Part 5? I'm thinking maybe if there has never been reinsurance nor assumed business, then direct = net. Alternatively, if there was a quote share style reinsurance, then actual severities wouldn't be accurate, but directional changes in them would have meaning.

Am i missing something?

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Old 12-04-2019, 10:32 AM
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Vorian Atreides Vorian Atreides is offline
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What is the goal of your analysis of claim severity and/or case reserve? That is, what are you hoping to learn or find out?
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Old 12-04-2019, 11:26 AM
Noonien Soong Noonien Soong is offline
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Assess any trends in claim severities. Severities of open claims vs closed claims by accident and calendar year. See if and just how much severities are exceeding an external index(like something from the bureao of labor statistics for example.)
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Old 12-04-2019, 02:46 PM
CuriousGeorge CuriousGeorge is offline
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Is this your company or someone else?

One workaround is to rebuild Parts 2-4 on a direct only basis, using multiple Part 1 reports. Or, if it is your own company, just ask for the direct triangles.
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Old 12-11-2019, 12:41 AM
jerrytuttle jerrytuttle is offline
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Besides understanding the specific reinsurance, you probably want to understand how claim counts get into Schedule P. If there is a BI claim and a PD claim, or an indemnity claim and a medical claim, is that two claims? If there is assumed reinsurance, are claims really getting recorded in Schedule P? What about multiple claimants, reopened claims, etc.? The reserving actuaries probably know these answers, and have better data than Schedule P.
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Old 12-11-2019, 09:07 AM
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Maphisto's Sidekick Maphisto's Sidekick is offline
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Note that your reserving actuaries probably mostly have data for your company, but if your company isn't big, you might have issues with credibility, and therefore need external data.

ISO/NCCI data and competitor filings are great sources for such information.
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Old 12-11-2019, 11:55 AM
Noonien Soong Noonien Soong is offline
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Quote:
Originally Posted by jerrytuttle View Post
Besides understanding the specific reinsurance, you probably want to understand how claim counts get into Schedule P. If there is a BI claim and a PD claim, or an indemnity claim and a medical claim, is that two claims? If there is assumed reinsurance, are claims really getting recorded in Schedule P? What about multiple claimants, reopened claims, etc.? The reserving actuaries probably know these answers, and have better data than Schedule P.
All of these would be good questions if I was looking a a specific company. But that is not the case, looking at industry data.

Quote:
Originally Posted by Curious George View Post
Is this your company or someone else?

One workaround is to rebuild Parts 2-4 on a direct only basis, using multiple Part 1 reports. Or, if it is your own company, just ask for the direct triangles
Industry data, so no specific company, though many, many companies aggregated.


Quote:
Originally Posted by Maphisto's Sidekick
Note that your reserving actuaries probably mostly have data for your company, but if your company isn't big, you might have issues with credibility, and therefore need external data.

ISO/NCCI data and competitor filings are great sources for such information.
I have used ISO in previous situations. Agreed about their usefulness as a complement.
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Old 12-11-2019, 12:19 PM
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Vorian Atreides Vorian Atreides is offline
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If you're looking at "industry data," why not just use ISO?
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  #9  
Old 12-12-2019, 10:22 AM
Noonien Soong Noonien Soong is offline
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Quote:
Originally Posted by Vorian Atreides View Post
If you're looking at "industry data," why not just use ISO?
Different employer, we don't pay for it .
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