Abstract:
In insurance, underwriting performance is a function of exposures, losses relative to exposures and premiums relative to exposures. Getting losses and loss trends right (--> cost of goods sold) is critically important. A small estimation mistake typically has a large impact on the bottom line. Swiss Re is determining loss relevant trends using advanced analytics, often in collaboration with universities, government organizations, NGOs, rating agencies, consultants, investment management firms, lawyers, and others. Findings are used for both capital allocation and...