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Explore the diverse approaches to setting reserve ranges in insurance companies like AIG, Chubb, and ACE, with insights on methodologies, testing, and recalibration. Learn from Hartford, TPC, MBE St. Paul, Everest Re, CNA, XL Capital, Partner Re, and more.
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Session Practical Applications Of Reserve Ranges Lee Steeneck
SEC 10-K 12/03 Disclosures on use of reserving ranges AIG, Chubb, ACE do not speak to ranges Hartford shows variability in 3 yr development to 12/03 TPC considers results of multiple methods, backtests and recalibrates MBE St. Paul considers a range of estimates bounded bottom/top and records MBE Everest Re creates high/low in 5 classes using objective and subjective means. MBE set by class CNA has 4 classes and shows +/- of 7-10%, 25% for inherent volatility from MBE XL Capital sets point estimates and ranges by LOB, creates statistical distribution(VAR), and forecasts out 1 year Partner Re doesn’t disclose ranges but uses stochastic simulations in determining MBE. MBE= Management’s best estimate; reserves held. Lee Steeneck, Practical Applications of Reserve Ranges. Disclaimer = My remarks are personal, not representing views of my employer or the cosponsors of this CLRS event.