RIVERSTONE PRESENTS AT CLRS 2021
Some of RiverStone’s actuarial experts will be presenting at this year’s virtual Casualty Loss Reserve Seminar on September 13-15, 2021. This key event is presented by the Casualty Actuarial Society and the American Academy of Actuaries.
James Kahn, Brad Tumbleston, and Wilson Townsend will present at a concurrent session entitled Estimating Loss and ALAE Reserves in the Challenging World of Construction Defects (CD) Risks by Consideration of Closed Payment Segmentation. Their presentation will highlight key observations and techniques noted in their recently published reserve call paper: Segmenting Closed Claim Payment Data to Estimate Loss and ALAE Reserves for Construction Defects. Click here to read the complete paper.
Key points of the presentation will include discussion about:
- The scarcity of accompanying CD literature within the publications of the Casualty Actuarial Society
- Ease of data compilation with the cited technique
- Observations with claim severity and length of time from report date to settlement/closure date
- Ability to cap historical closed claims and provide historical excess “loads” so as not to distort claims history for large claims; and
- Segmentation and projection of Allocated Loss Adjustment Expense (ALAE) by ultimate claim status
The speakers will highlight how these techniques may lead to earlier understanding and adjustments of changes to data versus traditional methodologies. Among the most critical factors of success for an insurance company is a strong partnership between their actuarial and claims departments. This partnership is key to the understanding of construction defect liabilities.