Financial information » Insurance

ALAE Methods

admin — Sun, 29 Mar 2009 13:31:27 +0000

ALAE Methods. Methods are similar to the paid loss development method, the reported loss development method, the Bornhuetter-Ferguson paid loss method, the Bornhuetter-Ferguson reported loss method, the reported count and average value method and the reported losses with de-trended average open claim. Average paid ALAE per closed claim was not used because ALAE often involve periodic payments and payments may not be related to the claims that are closed. An additional method, the reported ALAE as a percent of reported loss method, is similar to the reported count and average value method.

Reported losses with de-trended average open claim method

admin — Fri, 20 Mar 2009 13:22:41 +0000

Reported losses with de-trended average open claim method. This method is also known as the Berquist-Sherman method. Average case basis reserves at prior levels of maturity are re-stated using an assumed trend rate. The case basis report losses are then adjusted to reflect a more stable average case reserve. Adjusted reported losses equal paid losses plus the number of open claims times the adjusted average open claim value. The trend rate was selected judgmentally based on a review of average paid claim severities and other indications. Methods similar to the reported loss development method, the Bornhuetter-Ferguson reported loss method, and the reported count and average value method are applied to adjusted reported losses. This method adjusts for case reserving methods that may have changed over time.

Reported loss development method

admin — Mon, 16 Mar 2009 13:21:10 +0000

Reported loss development method. Case basis reported losses are projected to ultimate values based on historical development patterns. Historical loss development factors are reviewed and forecasted factors are selected. The selected factors are used to project ultimate paid losses. This method is most reliable when the insurers have stable case reserving practices. The case reserving practices of the participating companies combined are generally stable but at least one major insurer does not have stable case reserving practices.

Paid loss development method

admin — Mon, 09 Mar 2009 13:19:39 +0000

Paid loss development method. Paid losses are projected to ultimate values based on historical development patterns. Historical loss development factors are reviewed and forecasted factors are selected. The selected factors are used to project ultimate paid losses. This method is most reliable when payment patterns are stable over time. The payment patterns for medical malpractice are not generally very stable, particularly for early levels of development.

Florida Health Reform Legislation Passed

admin — Sat, 10 May 2008 23:13:54 +0000

The Sunshine State has passed health insurance law that allows insurance carriers to offer bare-bones coverage for as much as 150 per month. Directed at Florida’s 3.8 million uninsured citizens, the plans will be exempt from the current state-mandated coverage requirements. The plans will not be required to offer coverage for hospitalizations or treatment from specialists, but will cover preventive care and office visits.