Actuarial Group - News, Courses and Studys

03-11-2011 - Automobile Insurance aggravates the Capital at Risk of Insurance Companies

03-11-2011

The annual report of the Auto Insurance made by ACTUARIAL Consulting shows that the insurers ended 2010 with negative subscriptionresults, -27 million euros, a fact that has not happened since 2002. However, the technical results were still positive, 55 million, euros as a result of investment income that will have reached 82 million Euros, which means a return of 3.3%.

These results contrast with those obtained in previous years where profitability was much higher.

By: ACTUARIAL-Consultadoria

Given these results the capital at risk gross of insurance companies in the automotive industry before diversification effects and risks with other branches, is estimated at around 121 million Euros, 8.3% of its equity.

The average premium per policy, compared with the evolution of inflation, fell 46% in the last 10 years.

Although part of this evolution has been explained by the decrease in the frequency of accidents and their severity average, they failed to evolve in this way since 2010, which resulted in premiums charged below those that would be needed.

By: ACTUARIAL-Consultadoria

18-04-2011 - New Risk for Insurance Companies: Inflation

18-04-2011

Inflation is approaching the highest value of the last 11 years.

The nearly 4% in March 2011 meant an increase of nearly 6 points in less than two years.

This will bring the deterioration of the insurance premiums which are fixed in monetary values, such as in Health and Automobile Liability.

As has happened in the past, now distant, insurers will have to increase premiums each year due to the expected inflation.

05-04-2011 - Internal Models Reduce Solvency Capital II

05-04-2011

The application of internal models of Actuarial demonstrates a significant reduction in the level of capital of insurers and banks in terms of risk pooling.

Only in this way reductions achieved can be very significant at the aggregate Value at Risk. This effect also join possible reductions in modeling the market risks, credit and subscription business (the latter only on insurers).

04-04-2011 - Provisioning Accidents Influences Competition

04-04-2011

- The huge disparity Basic Techniques and criteria used in provisioning Accidents can produce distorted comparisons between insurance accounts;
- Forgetting the company over provisioning, the differences level of provisions among insurers may reach 69%;

- If there are companies that do not use actuarial methods to all liabilities and when they use them have bases
techniques for lower cost, they end up having insurance apparently a better accounting and solvency margin
greater competitive ability in most branches of insurance business;
- The consideration of general actuarial methods would certainly have some impact on management control of enterprises, whether by year of occurrence, either by calendar year, which would alter many
pricing decisions of some insurers.

Course: Financial Innovation (Financial Crisis in the U.S. and European Sovereign Debt Crisis)