Warrenfam

Loss Reserve Analysis

A reserve analysis provides a professional opinion regarding the loss reserves required for unpaid claims incurred as of a specific date. The estimates include a provision for the subsequent development of known claims as well as claims incurred but not yet reported. A reserve analysis is often prepared to meet regulatory or financial reporting requirements and is usually required by external auditors as part of the audit process. Since the loss generation and settlement process is probabilistic in nature, confidence bounds and/or reserves ranges are also provided so that potential variability in the loss reserve estimates might be demonstrated.

Loss Forecast

Estimated ultimate incurred losses can be forecasted for the current and future policy periods based on the client's unique historical losses and exposure. Losses can be forecast by line of business and division as needed. Losses can be projected at several per occurrence retentions. This analysis assists in budgeting, evaluating excess insurance quotes, and might be the basis of the premium analysis.

Premium Analysis

Prior to renewal, the adequacy of the current rate structure can be evaluated. Based on the client's unique experience, losses and expenses can be forecast. It is important that the rate structure be adequate to fully cover expected loss and expenses, yet be competitive.

Risk Retention Analysis

This analysis helps the client to assess the advantages and disadvantages of different levels of risk retention, by comparing the expected increase in retained losses to the excess premium savings.

Cash Flow Analysis

The payout of the projected losses can be forecast to estimate the investment income expected to be earned on the losses before they are paid, as well as, to analyse cash flow incurred, and paid loss retrospectively-rated programs.

Solvency II

CEA, the European insurance industry trade body on Solvency II initiative, is considering special treatment for captives and reinsurance undertakings on their technical specification. We can help companies on their preparation for the Solvency II requirements, including Gap Analysis, the calculation of their capital requirements, as well as advice on their ORSA (Own Risk and Solvency Assessment), and on OSCA (Own Solvency Capital Assessment) for Guernsey. We can also undertake responsibility of internal actuarial function and/or specific roles within that function.

Business Plans

We provide assistance on Business Plans and financial projections preparation and reviews and issue relevant Statement of Actuarial Opinion as needed. We may also assist companies on their discussions with their regulators.