Actuarial

Loss reserve studies for workers' compensation and liability self-insurance

Finbryn provides loss reserve study support for employers and captives that self-insure workers' compensation, general liability and auto, running chain-ladder, Bornhuetter-Ferguson and expected loss ratio methods on your claims triangles, with ranges and funding levels, for review and signature by a credentialed signing actuary.

What is included

• Loss development triangles by program and accident year
• Unpaid loss estimates from more than one method, with the selection explained
• A range around the central estimate and the drivers behind it
• Funding and budget projections for the next program year
• Accrual support for the financial statements

The process

1. 1.

   Agree scope and the signing actuary

   Lines, programs, valuation date and the signing actuary named in the engagement letter.

2. 2.

   Collect loss runs

   Claims by accident year with paid, case reserves, recoveries and any allocated expense, at each valuation date.

3. 3.

   Reconcile and build triangles

   Tie counts and totals to the ledger and the prior study, then build paid and incurred triangles by line.

4. 4.

   Run the methods

   Paid and incurred chain-ladder, Bornhuetter-Ferguson and expected loss ratio, with every factor shown.

5. 5.

   Prepare the selection, range and funding view

   Unpaid by accident year, the drivers of uncertainty, and funding at the confidence levels the sponsor chooses.

6. 6.

   Signing actuary reviews and signs

   The credentialed actuary reviews methods, selections and any opinion, and signs what the situation requires.

7. 7.

   Auditor review

   Your auditor receives the memo, workpapers and signed results to support the accrual.

Software

Microsoft Excel, Python, R

Contact

+1 (312) 313-7376
hello@finbryn.com
finbryn.com
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