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... strictly a technician. However, actuaries should be viewed as management cons...SUALTY ACTUARY REQUIRE? Although actuaries add value in many ways, the reason most people bring actuaries into a project is to take advant...

...of loss development factor data: actuaries, brokers, insurance companies, and ...

... x No Thanks Loading.. Loss Portfolio Transfer 4/30/2013 by CompleteMarkets Editor , Al Rhodes This content has not been rated yet. LOSS PORTFOLIO TRANSFER by Al Rhodes A loss portfolio transfer (LPT) is one of the few transfers that can be a winning deal for buyer and seller. An LPT allows you to transfer claims to another party for a fixed sum. An LPT program involves past claims, but not future claims, as with a traditional insurance program. The main steps in an LPT are the claims review; actuarial analysis; and accounting for the transferred portfolio. The transaction involves the portfolio value of the liabilities, which is discounted to net present value; the investment value of risk capital; and issues such as administration, accounting, and taxes. SELLER'S ADVANTAGES: Eliminating uncertainty over the cost of losses, pay-out patterns, and interest-rate risks, including unreported losses. Reducing administrative duties. Eliminating accumulated collateral. Freeing up escrow funds used for claims handling from the TPA or the carrier. Seeing a positive effect on the balance sheet. Getting an accelerated tax benefit. SELLER'S DISADVANTAGES: Immediately paying the claim reserves' net-present value may reduce cash flow and investment opportunities if the value of cash increases. Losses may be lower than anticipated. The loss pay-out may be longer than anticipated. The seller may lose control of claims handling. The seller has to pay a fee for transferring the risk and administration. Losses might not be properly accrued or accounted for on current books. BUYER'S ADVANTAGES: The buyer gets a fee and may be able to manage ...

... Services Jobs PR Newsletters Employees Articles Blog Photos Group Connections Reviews IMMS Library Immerse yourself in our stacks. Take some time and browse through our library. We have thousands of articles, checklists, tip sheets, sales letters, and more! Communications Marketing Customer Service Planning Finance/Accounting Risk Management Human Resources Selling Legal and E&O Technology Life/Financial Services Glossaries Management Resources & Links Categories Popular Recent All risk managers Articles tagged with risk managers Back A Look At Value Added Selling As An Answer To Price Selling This content has not been rated yet. CompleteMarkets Editor , Allen Karlin 4/30/2013 10:41:34 PM A LOOK AT VALUE ADDED SELLING AS AN ANSWER TO PRICE SELLING by Allen Karlin, Ph.D. U.. All Articles by CompleteMarkets Editor Comments (0 ) Actuarial Checklist For The Insurance And Risk Management Professional This content has not been rated yet. CompleteMarkets Editor , Al Rhodes 4/30/2013 10:45:23 PM ACTUARIAL CHECKLIST FOR THE INSURANCE AND RISK MANAGEMENT PROFESSIONAL by Al Rhodes The responsibilities of risk managers, risk management consultants, accountants, and brokers increase as insurance.. All Articles by CompleteMarkets Editor Comments (0 ) Are Antiquated Phrases Hurting Your Business? This content has not been rated yet. CompleteMarkets Editor , Gary Blake 4/30/2013 12:00:00 AM ARE ANTIQUATED PHRASES HURTING YOUR BUSINESS? by Gary Blake As someone who travels from one insurance company to another teaching Effective Business Writing for Claims and Risk Managem.. All Articles by CompleteMarkets Editor Comments (0 ) Are Multi-Year Policies Really A Good Choice? ...

... Jobs PR Newsletters Employees Articles Blog Photos Group Connections Reviews IMMS Library Immerse yourself in our stacks. Take some time and browse through our library. We have thousands of articles, checklists, tip sheets, sales letters, and more! Communications Marketing Customer Service Planning Finance/Accounting Risk Management Human Resources Selling Legal and E&O Technology Life/Financial Services Glossaries Management Resources & Links Categories Popular Recent All project Articles tagged with project Back A Direct Mail Horror Story This content has not been rated yet. CompleteMarkets Editor 4/30/2013 12:00:00 AM Getting your company's message out to the buying public doesn't have to be complex or expensive. Direct mail is perhaps the most targeted and cost-effective vehicle for communicating to an audience. All Articles by CompleteMarkets Editor Comments (0 ) Actuarial Checklist For The Insurance And Risk Management Professional This content has not been rated yet. CompleteMarkets Editor , Al Rhodes 4/30/2013 10:45:23 PM ACTUARIAL CHECKLIST FOR THE INSURANCE AND RISK MANAGEMENT PROFESSIONAL by Al Rhodes The responsibilities of risk managers, risk management consultants, accountants, and brokers increase as insurance.. All Articles by CompleteMarkets Editor Comments (0 ) Ask Employees For Suggestions On Improving Performance This content has not been rated yet. CompleteMarkets Editor , Paul Serwinek 4/30/2013 10:45:45 PM ASK EMPLOYEES FOR SUGGESTIONS ON IMPROVING PERFORMANCE Paul Serwinek, Ph.D. A.. All Articles by CompleteMarkets Editor Comments (0 ) Boot Camp' For Insurance Agencies This content has not been rated yet. CompleteMarkets Editor , Dana Falardeau 4/30/2013 ...

... . Would you recommend this company? 2. What about this company do you like/dislike? 3. Why did you choose this rating? Submit This Anonymously Submit Cancel Contact Us contact_phone Click to call Unfollow First name: Last name: Email: Are you sure you want to deactivate your CompleteMarkets Company Profile Deactivate Cancel Loading.. About Us Services Jobs PR Newsletters Employees Articles Blog Photos Group Connections Reviews IMMS Library Immerse yourself in our stacks. Take some time and browse through our library. We have thousands of articles, checklists, tip sheets, sales letters, and more! Communications Marketing Customer Service Planning Finance/Accounting Risk Management Human Resources Selling Legal and E&O Technology Life/Financial Services Glossaries Management Resources & Links Categories Popular Recent All loss experience Articles tagged with loss experience Back Actuarial Checklist For The Insurance And Risk Management Professional This content has not been rated yet. CompleteMarkets Editor , Al Rhodes 4/30/2013 10:45:23 PM ACTUARIAL CHECKLIST FOR THE INSURANCE AND RISK MANAGEMENT PROFESSIONAL by Al Rhodes The responsibilities of risk managers, risk management consultants, accountants, and brokers increase as insurance.. All Articles by CompleteMarkets Editor Comments (0 ) Advice As A Value-Added Benefit This content has not been rated yet. Jack Burke 4/30/2013 12:00:00 AM ADVICE AS A VALUE-ADDED BENEFIT by Jack Burke Despite turbulence in today's health field, HMOs have made dramatic inroads into our national concept of medicine. Twenty years ago, most pe.. All Articles by Jack Burke Comments (0 ) Alternative Risk Financing: Not Just For Fortune 500 ...

... the rates to be charged, and the way the coverage will be coordinated with the methods and levels they have chosen for retention and risk financing. Why should they not expect to have some initial understanding of who will handle their claims, how and by whom and within what legal and ethical parameters their claims will be defended, or some input into when and for how much their claims are settled? This is not to advocate that insurance carriers should abandon the claims discipline to their insureds, any more than they similarly abandon the underwriting discipline. However, as proper underwriting criteria for risk selection and rating differ under the circumstances of different programs or accounts, different market conditions, and different carrier appetites, the procedures and standards that dictate claims practices can also differ and still be proper legally and actuarially. For instance, good claims practice dictates that subrogation from a viable third party, once identified, should always be pursued because the policy provides the carrier that right. But what if the viable third party happens to be an important client of the insured and an attempt to recoup a claim expenditure could interfere with the insured's continuing relationship with that client in the long run? Especially when the insured participates in the ultimate financial exposure for the loss, whether to subrogate becomes not only a claim decision but also a business decision. As another example, cost-effective claims philosophy dictates that small claims even if somewhat questionable, usually be settled early at a nominal cost (commonly called nuisance value) to prevent the need for incurring further investigative and defense expenses. But what if the insured believes that ...

... the rates to be charged, and the way the coverage will be coordinated with the methods and levels they have chosen for retention and risk financing. Why should they not expect to have some initial understanding of who will handle their claims, how and by whom and within what legal and ethical parameters their claims will be defended, or some input into when and for how much their claims are settled? This is not to advocate that insurance carriers should abandon the claims discipline to their insureds, any more than they similarly abandon the underwriting discipline. However, as proper underwriting criteria for risk selection and rating differ under the circumstances of different programs or accounts, different market conditions, and different carrier appetites, the procedures and standards that dictate claims practices can also differ and still be proper legally and actuarially. For instance, good claims practice dictates that subrogation from a viable third party, once identified, should always be pursued because the policy provides the carrier that right. But what if the viable third party happens to be an important client of the insured and an attempt to recoup a claim expenditure could interfere with the insured's continuing relationship with that client in the long run? Especially when the insured participates in the ultimate financial exposure for the loss, whether to subrogate becomes not only a claim decision but also a business decision. As another example, cost-effective claims philosophy dictates that small claims even if somewhat questionable, usually be settled early at a nominal cost (commonly called nuisance value) to prevent the need for incurring further investigative and defense expenses. But what if the insured believes that ...

... other folks get what they wanted. Man, was he ever right." Mike took a short breath and continued his monologue. "I had a new client give me $800,000 last week. His existing agent had started to take him and the soft market for granted. He thought a savings of 8% on the expiring premium would guarantee renewal. The problem was the discount was on the wrong coverage and priced against the wrong codes. He had been taking the account, the customer and the relationship for granted. "If somebody gives me a check for $800,000, I take it personally. I'll fight for that guy or gal. My job is to solve the client's problems, not those of the insurance carriers. The insurance companies have underwriters, actuaries, and lawyers on staff they don't need me. The client is my responsibility." Mike had discovered the obvious: His future and the future of his agency were simply to be defined and driven by clients rather than by carriers and producers, as with too many "successful" agencies today. For the next few minutes, we "debriefed" his conversion and more importantly that of his agency team. Mike and his consultant had stripped the operation bare in search of reality. The agency in recent years had become over-managed and under-led. In essence, agencies are the aggregation of products, processes, people, and passion. Products and process require management. People especially the best talent demand leadership. Passion is energy that ensures the best result from the talent assembled. Passion is ...

... $3.75. The improvements over the last three years are $0.48, $0.81, and $0.98, respectively. For every $10 million of payroll, this is a savings of $227,000 ($ 48,000+ $81,000+ $98,000) during the three years. You can use this type of analysis to calculate additional compensation for the group in charge of the program based on a percentage of the savings. However, be aware that: (1 ) It takes several years to complete a credible analysis; (2 ) the improved loss experience might not be due to the loss program; and (3 ) a system of checks and balances is needed to ensure that claims haven't been manipulated. Al Rhodes can be reached at Sigma Actuarial Consulting Group, (615) 352-3944, Fax (615) 352-7555, e-mail [email protected] , Web site www.specificsoftware.com . Login or Register (for FREE) to gain access to thousands of other great articles. Need more reasons to join? Need insurance for you, your business or your family? Get quality appointments - Save yourself a whole lot of time & money when you use our directory of carriers, wholesalers and service providers. Negotiate lucrative contracts with carriers and wholesalers. Net result. More revenue for your agency! Clients & Prospects will research you, your co-workers and your agency here. The most comprehensive online insurance industry reference library for - Personal Lines Professionals Commercial Lines Professionals Life/Health & Benefits Professionals Online newsletters and content that you can use for your clients and ...