Quote:
Originally Posted by aceventura3
Actuaries would not agree with you.
I don't know what more to say.
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Sure about that? Because they actually do agree with me. Actuaries are the first in line to point out under-reserving as well objecting to the early release of IBNR reserves. It's an industry-wide practice that has directly led to the downfall of at least a dozen carriers during my career. Larger than expected actual losses from IBNR reserves in - specifically - California residential construction and Workers Compensation nationally forced the Loews to inject an additional $1.1B in their own personal capital into CNA in 2005 (I think that was the year). CNA, at the time, had been in business roughly 110 years.
Kemper was specifically taken down by unexpectedly large IBNR claims in 2002, mainly because of the IBNR from the mid-90's. Reliance was around for 175 years but got taken down by - dundunDUN - under-reserved IBNR claims for Workers Compensation.
Ace, let me know if you need me to find you this documenation. It's all readily available.
You don't know what more to say because you've obviously reached the depths of your knowledge. None of this has been a personal attack. A personal attack would be "ace, you're a big stupidhead" when obviously you're not. You're just ignorant of many of the details of the topic at hand, which isn't an insult. It just means that you don't know what you're talking about.