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Statistical Analysis

Statisitical studies originally focused on quantifying the costs and benefits to clients relating to specific reinsurance structures and risk retention mechanisms.  From that point, clients have increasingly asked for broader analytics to help determine the performance of portfolios, profitability of prospective programs, and impacts of business decisions.  Additionally, clients have requested Randy’s involvement with Third Party Actuaries to ensure they have a thorough understanding of the client’s reinsurances.

The overriding goal in all statistical work is to provide the client with a product which accurately, efficiently, and understandably measures the financial impact of decisions.

Examples of Statistical/Analytical Projects Include:

 

Client Project
Insurance Company Comparison of excess of loss treaty reinsurance pricing to actual company pricing for layer reinsured.  Determined that company was being charged more for reinsurance than was being collected as insurance premium.

 

 

Program Manager

 

Cost/Benefit analysis of a captive insurance arrangement as a form of risk retention.  Found divergent permissible loss ratios between Manager and Insurer while pricing was set by insurer.

 

Insurance Company

 

Insurance Company

 

Portfolio analysis.  Identified specific classes in certain states with unacceptable loss ratios.  Project led to development of a data warehouse.

Peer comparison of contingent commission agreements.  Identified competitive advantages and areas of improvement.