Rate Making - Part 1 - Anti Selection, Rate Relativity, and Credibility

WHY IS THERE A NEED FOR RATE RELATIVES?
1. Individual Insureds differ in potential risk and amount of insurance coverage.

2. We can ensure each group pays its share of losses and avoid anti-selection while ensuring fair discrimination.

Thoughts on Business Intelligence For General Insurance Detariff

This post discusses the common types of underwriting levels, impact from competition during detariff and some thoughts and expectations on the detariff market.

[Framework] Insurer's Financial Rating - Part 2 - ERM

ERM

1.  ERM should become a natural extension of an insurer’s fundamental risk management practices, with the foundation still rooted in sound traditional controls and policies encompassing the five key categories of risk: credit, market, underwriting, operational and strategic.

2.  ERM encompasses three key areas - Culture, Identification and Management, and Measurement.

[Framework] Insurer's Financial Rating - Part 1 - Risk Management

RISK MANAGEMENT
1. Risk management is the process by which companies systematically identify, measure
and manage the various types of risk inherent within their operations.

2 Important to note that the objective of risk management is not to eliminate
risk and volatility, but to understand it and manage it.

3. Below are the key risk management trends in the insurance industry and describes how risk management impacts the overall rating process and the development of capital requirements.