OM Insure and ASABA Actuarial Masterclass - Online Webinar, 26 August 2022

Old Mutual Insure’s Chief Actuary, Ronald Richman, presented the first masterclass in the series as part of the non-life (short-term) insurance practicing initiative of the Association of South African Black Actuarial Professionals (ASABA) and Old Mutual Insure. The theme was "Reserving with the Cape Cod Method" and this video covers everything from the basics all the way up to advanced methods of setting the parameters using machine learning. 2:46 Start of session and Introduction 5:16 A summary of what will be covered in the masterclass 5:58 Ronald explains what reserving for short-term insurance is and how its done 9:38 The key principles behind how we actually reserve for claims 13:50 Ronald introduces the Chain Ladder Method (CLM) 18:28 Question: Are the methods discussed here also applicable to IBNR claims? 19:45 Moving from the Chain Ladder Method to the Cape Cod Method 24:35 Question: How far should one go back in time to compare the link ratios to the selected development factors? 27:40 The history behind the Cape Cod Method 29:07 The principle of the Cape Cod Method 33:01 Applying the Cape Cod Method 40:00 How does your Cape Cod loss ratio compare to our Chain Ladder loss ratio? 40:55 Rules of thumb 42:43 Ronald answers questions from the audience 1:03:22 How can you allow for different development patterns? 1:03:59 How well does Cape Cod perform in an inflationary environment? 1:04:43 Are regulators particular with any of these methodologies or any preferences that they have? 1:05:44 Final comments and closing #OldMutualInsure #Actuaries #Masterclass