We’ve learned to project catastrophe losses using exposure-driven models that actuaries and other geeky people developed over the last few decades.
So, when will the accountants get up to speed in their analyses that currently only compare current quarter and year catastrophes to the immediate prior year’s quarter and year?
I would think it is fairly easy to smooth prior year catastrophes according to a rolling 20 or 30 quarter average to be used as the benchmark for assessing the current quarter and year catastrophes. Going one step further, perhaps the geekier members of the insurance industry could also adjust those rolling averages to reflect the current property profile exposures in terms of volume and location of exposures?
This article is informative, but again falls into the misleading trap of using the ‘if not for those unusual catastrophes, results would have been better’ disclaimer tactic.
Finally, where are the Global Warming Alarmists to ring their alarm bells and warn of impending floods signaled by the increased catastrophes we just experienced? Al Gore must have forget to send out his blast email to all his followers in positions to publicize such things.
We’ve learned to project catastrophe losses using exposure-driven models that actuaries and other geeky people developed over the last few decades.
So, when will the accountants get up to speed in their analyses that currently only compare current quarter and year catastrophes to the immediate prior year’s quarter and year?
I would think it is fairly easy to smooth prior year catastrophes according to a rolling 20 or 30 quarter average to be used as the benchmark for assessing the current quarter and year catastrophes. Going one step further, perhaps the geekier members of the insurance industry could also adjust those rolling averages to reflect the current property profile exposures in terms of volume and location of exposures?
This article is informative, but again falls into the misleading trap of using the ‘if not for those unusual catastrophes, results would have been better’ disclaimer tactic.
Finally, where are the Global Warming Alarmists to ring their alarm bells and warn of impending floods signaled by the increased catastrophes we just experienced? Al Gore must have forget to send out his blast email to all his followers in positions to publicize such things.