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. [...]
Dan Tevet
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 [...]
