The Financial, Insurance & Investment Blog

There are five basic types of approaches to calculate claim reserves. These types are: (i) Tabular methods (ii) Case reserve methods (i...

1. The term risk margin is commonly used in the observation that stating the loss reserve at nominal (rather than discounted) values provide...

1. In 2013, the industry put 78 million tonnes of plastic packaging on the market, with a total value of $260 billion.Plastic packaging vol...

1. The job of an inverter is to invert – it takes DC (Direct Current) and converts it into AC (Alternating Current) so that it can  run on e...

1. Unearned Premium Reserve (UPR) is that portion of premium which is not earned by the insurer. The insurer has to maintain a premium reser...

1. As a financing mechanism, a quota share treaty is very important to provide surplus relief 2. The more surplus (assets minus liabilitie...

1. As described earlier, pro rata, also called “proportional,” is a form of reinsurance in which the reinsurer shares a proportional part of...

The purpose of reinsurance is to spread risk. This post provides a simple overview for those new to the industry.

1. It is a natural law that the historic longevity trend will continue into the future.  2. Every stochastic mortality forecast model extr...

One of the greatest threats facing life insurers is anti-selection (also called adverse selection or negative selection). Anti-selection occ...

1. Surety is a promise by a surety (the obligor or insurer) to pay  one party (the obligee) a certain amount if a second party  (the princip...

1. Process robotics works by automating the entire supply chain from end to end—not just individual tasks—enabling all different sections to...

1. beta is a measure of a security's or portfolio's volatility in comparison to the stock market as a whole. 2. "beta" i...

1. A passive fund is composed to track its benchmark (for example a large-cap fund might be benchmarked against the S&P 500 index) witho...

1. Index funds will tend to underperform active managers in strongly positive and strongly negative markets. 2. The argument is based on t...

1. In April The Financial Conduct Authority investigated how the financial system would cope in the event of a fund manager failure.  2. T...

1. When a company writes risks across a number of classes, it seems reasonable to anticipate that the values assessed to give a 75% likeliho...

1. The selection of the loss development tail factor is extremely important because it affects estimates for all accident years. 2. A mino...

1. In April 2017, The Actuary reported trade credit insurers paid £210m to businesses last year due to non-payment claims, the equivalent of...

1. Malaysia's economy is performing well in the region in terms of efficiency and business regulations despite modest GDP growth of 4.1 ...