Actuarial Outpost ISO ILF Curves
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#1
09-17-2018, 06:46 PM
 actuario92 CAS Join Date: Aug 2015 Posts: 6
ISO ILF Curves

For anyone familiar with ISO Verisk curves, particularly their ILF curves, does anyone know the difference between the three tables (1-3) they provide for each group?
#2
09-17-2018, 11:18 PM
 therealsylvos Member CAS Join Date: Mar 2014 Posts: 17,044

Quote:
 Originally Posted by actuario92 For anyone familiar with ISO Verisk curves, particularly their ILF curves, does anyone know the difference between the three tables (1-3) they provide for each group?
Different classes are grouped together in each of the tables. Consult the CLM for the mapping.
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#3
09-18-2018, 04:19 PM
 jerrytuttle Member CAS Join Date: Oct 2001 Posts: 271
ISO ILF Curves

I suggest you read the actuarial circular on the ILF curve once so you understand how ISO constructs its curves. Possibly there are components of the calculation where you feel industry data should be replaced with your own company considerations.
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Thanks,
Jerry
#4
09-19-2018, 02:57 AM
 oirg Member CAS Join Date: Oct 2003 Posts: 8,322

If I remember correctly, tables 1, 2 and 3 are for the premises/operations coverage. Classes assigned to table 1 have the lowest average severity of losses while classes assigned to table 3 have the highest. As Jerry suggests above, looking at the actual circular would provide the information you’re looking for.
#5
09-24-2018, 11:37 AM
 r8ingStuff CAS AAA Join Date: Apr 2016 Location: Philadelphia Studying for Nothin' Favorite beer: Urban Village Brewery Posts: 16

Quote:
 Originally Posted by oirg If I remember correctly, tables 1, 2 and 3 are for the premises/operations coverage. Classes assigned to table 1 have the lowest average severity of losses while classes assigned to table 3 have the highest. As Jerry suggests above, looking at the actual circular would provide the information you’re looking for.
This is correct. ISO publishes tables 1-3 for Prem/Ops only, and these are further split into state groups that can be identified by downloading the Actuarial Services circular and looking at the state key. The Products/Completed Ops curves are split into Tables A,B, and C and there are only 3 curves, as these are countrywide.

It's not just about average severity, however. Table 1 has a thinner tail with regard to size of loss than Table 2, which in turn has a thinner tail than Table 3 - so it has more to do with how large the ILFs are for certain class codes that are mapped to these tables.

 Tags curves, ilf, iso