Subscribe to Our Blog
Table 1: CAL Net Reported Incurred Loss & DCC
Given this large spread, we consolidated the risks into three buckets
based upon their rate of loss development:
slow, medium and fast. In so doing, we are able to properly develop an
insureds losses based on his or her insurer. This next chart illustrates these consolidated
Table 2: CAL Net Reported Incurred Loss & DCC: Slow, Medium, Fast
We at Pinnacle use this method specifically for the trucking industry
because it more accurately projects ultimate losses, which are used to
calculate loss ratios, loss costs and reserves.
For more detail on this analysis, please visit the Knowledge Center for Pinnacle’s
February 2013 APEX webinar, “Case Studies Using Publicly Available Data,” by
Erich Brandt and Greg Fears, or read, “Mining the Store,” by Erich Brandt, published
in Best’s Review’s August 2014 issue.
The long haul trucking industry is large and carries a very unique exposure
base. There is a market for accurately-priced long haul trucking insurance. The
more data that becomes available, the more accurately we can price these risks.
« Back to Blog
Full Site Map
Pinnacle is an actuarial firm focused on property/casualty insurance, including alternative markets, captives, self insureds, enterprise risk management, predictive analytics, commercial lines and more. We serve trucking, insurance, health care, medical professional liability, reinsurance, workers compensation, public entities and other companies and concerns.
Our services include expert witness, loss reserving, litigation support, pricing, ratemaking, rate filing, statements of actuarial opinion, feasibility studies, capital modeling and other actuarial services and products.
Phone: (309) 807-2300
Fax: (309) 807-2301
Copyright © 2003 - 2018 Pinnacle Actuarial Resources, Inc.