The Rise of Losses: A Look into the Effects of Larger Insurers Pulling out of California

Description
There are many emerging issues in the insurance market that have become more prevalent following COVID-19. Initially the issues were within the life and health insurance sector; however, in recent years there has been a notable increase in other sectors

There are many emerging issues in the insurance market that have become more prevalent following COVID-19. Initially the issues were within the life and health insurance sector; however, in recent years there has been a notable increase in other sectors of insurance, with property and casualty being one of them. Following 2020, 2021, and 2022 losses, many property and casualty companies had to reassess where they were at and what losses they would be willing to take on. As reserves began to grow thin and severity began to rise, insurers and reinsurers began to investigate ways to combat the rising cost of insuring their policyholders. Even though this is an issue nationwide, the recent shifts in the California insurance market will be the scope for this dissection. This deeper look into the hardening market will provide greater insight to the issue at hand, as well as potential solutions for this market and insurers alike in the upcoming years.
Date Created
2023-12
Agent

A Comparative Analysis of Risk Measure Calculation Methods in the Health Insurance Market

Description

Regulation in the insurance market has increased greatly over the past four decades, and recent regulatory frameworks such as Solvency II have made simulations increasingly important. Monte Carlo simulations are often too inefficient to be used by themselves, and these

Regulation in the insurance market has increased greatly over the past four decades, and recent regulatory frameworks such as Solvency II have made simulations increasingly important. Monte Carlo simulations are often too inefficient to be used by themselves, and these Monte Carlo simulations begin to struggle when the complexity of insurance contracts increases. For that reason, there have been numerous suggested improvements to traditional MC methods such as the sample recycling method and a neural network method. This thesis will review various risk measures, the methods used to calculate them, and a detailed analysis of the neural network method and the sample recycling method. The sample recycling method and the neural network method will then be analyzed in detail, and a comparative analysis of the sample recycling method and the neural network method will be given. It was discovered that both the sample recycling method and the neural network method provide a large improvement in computational cost and overall run time with minor impacts on the accuracy. Thus, it was concluded that the sample recycling method is best suited for contracts where the inner loop estimations are particularly complex and the neural network is a general method that pairs well with complex input portfolios.

Date Created
2023-05
Agent

The Effects of Mortality by Socioeconomic Category on Group Life Insurance Rates and Plan Designs in the United States

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Description
Recent life tables provided by the Society of Actuaries demonstrate mortality rate estimates for the United States by year from 1982 through 2018, separated by socioeconomic deciles and quintiles. These estimates were utilized to determine how life insurance rates might

Recent life tables provided by the Society of Actuaries demonstrate mortality rate estimates for the United States by year from 1982 through 2018, separated by socioeconomic deciles and quintiles. These estimates were utilized to determine how life insurance rates might vary based on the socioeconomic category of a specific United States county. The aim of this study is to determine how the data provided in these life tables can be utilized to curate life insurance rates and plan designs for employees at a specific company in the United States. The results indicate that there are significant differences in mortality across these socioeconomic quintiles, including greater life expectancy for individuals located in counties of a higher quintile. While there are no limits to the implications of these results in the insurance industry, this report highlights how the demographics of individuals working for a specific company could potentially alter life insurance rates for its employees.
Date Created
2022-05
Agent