Loss Reserves and the Employment Status of the Appointed Actuary
| Autor: | Si Li, Mary Kelly, Anne E. Kleffner |
|---|---|
| Rok vydání: | 2012 |
| Předmět: | |
| Zdroj: | BASE-Bielefeld Academic Search Engine |
| ISSN: | 2325-0453 1092-0277 |
| Popis: | Property/casualty (P/C) insurers are required to establish loss reserves for unpaid losses at the time that the loss has occurred or is reasonably expected to have occurred. We examine factors that may impact the accurate setting of loss reserves. These include the level of rate regulation faced by the insurer and the incentives to underestimate or overestimate reserves to improve financial ratios or improve solvency scores, to reduce earnings, to defer taxes, or to smooth earnings volatility in order to meet shareholder expectations. The employment status of the Appointed Actuary, that is, whether the Appointed Actuary is an employee of the firm or a consultant, may also impact reserve accuracy. Using a variety of regression models with data from 1995 to 2010, we examine the impact of these factors on the accuracy of reserves posted by Canadian P/C insurers. Our results provide no evidence of systematic differences in the magnitude or direction of loss reserve errors between insurers that use co... |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|