A Primer on Non-Life Insurance Ratios Craig Thorburn

A Primer on Non-Life Insurance Ratios Technical Provisions

Unearned Premiums Methods elaborated in attachment Could make your own estimate using premium data from returns

An instructive example

Un-expired Risk Unearned premium depends on adequate premium rates Consider profitability of business

Claims Paid to Provisions Can be influenced by many factors Probably would only point to a need for further investigation.

An Example

Incurred but Not Reported Claims Would be constant in a stable claims environment and with stable claims management and provisioning practices.

Alternative Claims Estimates Requires internal capacity to make an alternative estimate Can then compare –Company provision with alternative assessment –last years expectations for the current year with the actual outcome

A Primer on Non-Life Insurance Ratios Fourth Break