Non-Life Insurance Consulting

Valuation of Policy Reserves

  • To determine the company’s liabilities in accordance with the Insurance Commission’s Circular (CL No. 2016 – 67)
  • The results include unearned premium reserves, unexpired risk reserves, outstanding claims, incurred but not reported, incurred but not enough reported, loss adjustments, expenses payable and catastrophic reserves.

Experience Studies

  • To understand the behavior of factors leading to the realization of a claim (e.g., accidents for car insurance: by type of accident, age group of driver, geographical region, etc.)
  • The results of an Experience Study provide the basis for determining whether insurance rates are reflective of the experience.

Loss Distribution Studies

  • Provides a picture of how losses (for a given insurance area) are spread out, within the perspective of amount of loss against risk level
  • The results from this study allow the insurer to understand the range of « expected » losses, vs that of catastrophic losses.

Premium Rate Determination

  • The services described above are necessary in ascertaining whether the premium rates are sufficient to cover a certain portion, if not all, of the expected losses.
  • The subsequent step is deciding which portion of the losses should be assigned to a reinsurer.