A Framework for Assessing Risk Margins - Marshall

Study Strategy

Checklist

1. Be able to list issues that arise when reserving high-deductible policies
2. Know how to index deductibles and why that is needed
3. Be able to calculate estimated excess losses and limited losses using the following methods
   • Loss Ratio
   • Implied Development
   • Direct (Explicit) Development
   • Credibility Weighting
4. Be able to list advantages and disadvantages of each method
5. Be able to calculate severity relativities
6. Be able to explain the distributional model and list advantages and disadvantages
7. Understand how aggregate limits work
8. Be able to calculate expected losses excess of aggregate limits using the NCCI method
9. Know the advantages and disadvantages of the NCCI method
10. Be able to list other methods for calculating losses excess of aggregate limits
11. Be able to calculate service revenue and the service revenue asset

My Notes