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Loss and Loss Adjustment Expense Reserves at Year-End 2009: Technical Analysis is an in-depth examination of property/casualty insurance reserve adequacy for 11 major lines of insurance. The report is an essential tool for actuaries and others analyzing loss reserves or cash flows for a property/casualty insurer.
ISO also offers a supplemental analysis of defense and cost containment expense (DCC) reserves for each of the studied lines. Both the Technical Analysis and the DCC supplement are available as hard-copy reports and Excel spreadsheets.
The Excel spreadsheets are available in two versions:
- file print format — designed to make it easy to cut and paste information into your own analyses
- full formula functionality — designed to let you modify ISO’s assumptions or apply ISO’s standard reserving techniques to your own data
Here’s what you get
Loss and Loss Adjustment Expense Reserves at Year-End 2009: Technical Analysis contains a comprehensive actuarial analysis of the industry’s loss reserves, with more than 200 pages of valuable information.
For each line of business, you get:
- findings about the industry’s reserve adequacy
- complete details of ISO’s methodology
- explanations for the specific loss development factors ISO selected
- the data ISO analyzed
»See additional details of the data and analyses in the report.
In addition to results based on ISO’s standard techniques for analyzing property/casualty industry loss reserves, this edition of ISO's Technical Analysis includes results from supplemental analyses based on the Cape Cod and Munich Chain Ladder reserving techniques, as well as statistically estimated confidence intervals for reserves based on a stochastic bootstrapping technique. (The Excel version with functionality supports all of ISO’s standard techniques but not the supplemental techniques.)
In addition, the report’s summary presents:
- ISO’s assessment of the industry’s all-lines reserves, based on the analyses for individual lines
- analyses of changes in reserve adequacy
- loss and defense and cost containment expense (LDCC) ratios by accident year and calendar year
- the relationship between changes in reserve adequacy and the underwriting cycle
- the effect of changes in reserve adequacy on the industry’s rate of return
How you can use the report
Loss and Loss Adjustment Expense Reserves at Year-End 2009: Technical Analysis contains a wealth of conclusions, explanations, and underlying data for professionals working on loss reserving or cash-flow analyses for insurers and other risk-bearing entities. The report can help you address several critical issues:
- credibility of data
ISO combines data from more than 880 insurer groups, representing more than 98 percent of the industry’s reserves for the studied lines (excluding environmental and asbestos reserves). The credibility of the results is valuable, especially if you’re entering a new line of business, if you have low volume in a particular line, or if your volume varies widely from year to year.
- benchmarking data
New line or old, low volume or high, you’ll probably want to compare your results with those of the industry as a whole. ISO’s large sample size (virtually 100 percent of the industry for many lines) provides a valuable reference for all insurers.
- payout patterns for cash-flow analyses
The report includes estimated payout patterns and discount factors for each of the 11 studied lines. You get estimated payout patterns for up to 30 years and estimated discount factors based on historical interest rates for each year from 2000 to 2009. You can use the information to estimate investment income for pricing calculations and to derive durations for asset/liability matching studies. And you can use the data about payout patterns to benchmark your claim settlement practices.
For more information . . .
. . . on Loss and Loss Adjustment Expense Reserves at Year-End 2009: Technical Analysis, call Michael Murray at 201-469-2339 or send e-mail to
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You can also contact ISO or call us at 1-800-888-4476. |
The report is an essential tool for actuaries and others analyzing loss reserves or cash flow for a property/ casualty insurer.
Order your report today
To order Loss and Loss Adjustment Expense Reserves at Year-End 2009: Technical Analysis, complete and mail or fax the order form.
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