保险学 Insurance Chapter 7.ppt

Chapter 7 Financial Operations of Insurers * * * * * * * * * * * * * * Transparency Master 1.2 * Transparency Master 1.2 Copyright ? 2011 Pearson Prentice Hall. All rights reserved. 7-* Copyright ? 2011 Pearson Prentice Hall. All rights reserved. Agenda Property and Casualty Insurers Life Insurance Companies Ratemaking in Property and Casualty Insurance Ratemaking in Life Insurance The Financial Crisis and Insurers Financial Statements of Property and Casualty Insurers Balance Sheet: a summary of what a company owns (assets) and what it owes (liabilities) Total Assets = Total Liabilities + Owners’ Equity Exhibit 7.1 ABC Insurance Company Financial Statements of Property and Casualty Insurers The primary assets for an insurance company are financial assets Insurers’ liabilities include required reserves A loss reserve is an estimated amount for: Claims reported and adjusted, but not yet paid Claims reported and filed, but not yet adjusted Claims incurred but not yet reported to the company Financial Statements of Property and Casualty Insurers Case reserves are loss reserves that are established for each individual claim Methods for determining case reserves include: The judgment method: a claim reserve is established for each individual claim The average value method: an average value is assigned to each claim The tabular method: loss reserves are determined for certain claims for which the amounts paid depend on data derived from mortality, morbidity, and remarriage tables Financial Statements of Property and Casualty Insurers The loss ratio method establishes aggregate loss reserves for a specific coverage line A formula based on the expected loss ratio is used to estimate the loss reserve The incurred-but-not-reported (IBNR) reserve is a reserve that must be established for claims that have already occurred but that have not yet been reported Financial Statements of Property and Casualty Insurers The unearned premium reserve is a liability item that represe