Asset Management Portfolio Diversification

BACKGROUND

Here is an article highlighting the need for life insurers to “broaden their horizons” due to low-yield returns in existing investment strategies.

It recommended non-traditional investments and different assets to consider alternatives in infrastructure, real estate-backed loans, asset-backed securities and unsecured assets such as high yield bonds.

This post will outline the few risk and opportunities of the non-traditional assets identified.

Link to article as follow:-

http://www.theactuary.com/news/2015/01/life-insurers-told-non-traditional-assets-critical-to-maintaining-profitability/

Claims Management Practices

BACKGROUND
Here are two articles highlighting practices in the insurance claims process. 

The first article listed the findings by the Financial Conducts Authority (FCA) on the handling of SMEs' insurance claims. Link as follow:

http://www.actuarialpost.co.uk/article/fca-review-insurance-claims-service-and-sme----039s-expectations-7900.htm

The second article reported the concerns by government task forces with the industry practices. Link as follow:

http://www.theactuary.com/news/2015/03/claims-management-companies-are-a-concern-for-insurance-task-force/

Innovation in General Insurance Underwriting

BACKGROUND An article discussing and providing points for insurers to innovate in view of stiff competitions, record capacity levels and reduced premium income. Link to article as follow: http://www.insurancebusinessonline.com.au/news/underwriters-urged-to-innovate-in-order-to-survive-in-major-industry-199226.aspx

The article  highlighted a number of areas where underwriters could offer more flexible coverage or new insurance products, they are: 1. Repackaging of onshore terrorism cover into property programmes. 2. Deletion of cyber exclusions. 3. Increased sub-limits for contingent business interruption (CBI) or supply chain risks. 4. A seamless product for onshore projects covering handover from construction to operating phases 5. Increased flexibility of aggregate limits and retentions for natural catastrophe risks.

Generalized Linear Model For Life Insurance

PURPOSE

Some traditional one-way  pricing methods do not factor in effects of correlations in the data leading to mispricing of relevant risks.

Not to be confused with General Linear Models, Generalized Linear Models utilizes a Maximum Likelihood estimation method and performs better with larger samples.