GRIT Overview 12 September 2005 Boston
About GRIT • General insurance Reserving Issues Taskforce • Terms of Reference • Implications of Reserve Cycle Working Party • How can we reduce chances of run off deficits • Issues arising from the ongoing press debate • Core Team Membership: Peter Copeman, Lis Gibson, Tony Jones, Nick Line, Julian Lowe, Paul Martin, Peter Matthews, Dave Powell, • Draft consultation paper produced
Segmenting the Challenge • Applying existing methods more consistently • Understand the Business Better • Improving our methods • Behavioural Issues and Third Party Influence • Respond to Uncertainty better • Measuring the past • Consulting our Membership • Consulting our Stakeholders
Scope Actuarial Assessment Vrs Selection for Purpose
Good News • Actuaries have a very strong brand • Reserving is interesting and exciting. It is the place to be.
Change Agenda • Make reserving more transparent • Give estimates of reserve uncertainty • Processes to understand the business better • Cycle-robust reserving methods • How to counterbalance pressure • Where to apply our methods more consistently
Implementation • A change management process • Reserving will be more work • Communication programme with the industry • Coordinate with CAS