Service:
Reserving for Outstanding Claims
Claims not reported and claims yet to be settled
Reserves for outstanding claims
What is it?
We will complete your calculations for claims Incurred But Not Reported (IBNR), as well as Reported But Not (Fully) Settled. We will do this on several bases (to be agreed with the client actuary). We will show modified chain ladder results, as well as projections linked to exposure. We will analyse and comment on different results from different approaches. And we will analyse the impact of procedural changes over time, especially in the light of changes in work patterns following the Covid-19 pandemic. And in the final analysis we will provide a set of projected claims, both in terms of number and associated cash flows.
Why outsource? Why to SRMS?
Many companies have found IBNR reserving to be an inconvenient distraction from other work. A high quality system that automates the end-to-end process (and provides high quality Management Information) might not be top of the actuarial priority list.
SRMS offers a relatively inexpensive scalable solution, that will provide good information for reporting, pricing and management purposes. We have experience in many markets and lines of business. We can assist you to provide an anonymised data extract, and will process the data to show a full multi-faceted view of your business and its claims development. And we can broaden our approach to incorporate bespoke solutions for you if required.
OK, how much?
Our pricing approach is based on unitised estimates of work. Prices will vary by complexity, number of lines, and number of different items for analysis. As an indication, an initial run on a simple system and single line of business (including assistance with data specifications and extracts) might cost £7,000. A complex multi-line and multi-faceted analysis might cost £30,000. Re-runs (say, additional runs next year) would be less expensive. VAT or Sales Tax would be added if required (depending on the country in which the client is based), and currency fluctuations might apply.
On the matter of currency, we accept Sterling, and other currencies via PayPal.
Anything else?
We can add complex analysis of multiple periods after a claim is notified. For now we expect a maximum of two separate periods (to first settlement, then to final settlement), but would be happy to discuss further requirements. We can also allow for specific shocks (multi-claim events, or claim amount outliers), along with mitigating factors (such as reinsurance).
We will also break down our analysis by specific factors (e.g. region) specified by our clients and by types of claim or contingency covered.
Please contact us for further details.
Contact Richard
Address: Darlington, UK
Phone: +44 (751) 102-5452
Email: richard@srmsi.com