Estimate retained losses
at higher confidence levels (to assess variability of results).
We should also have to reduce par value to wipe out retained losses
With this protection over aggregated retained losses
, the insured may also take a higher retention and save risk transfer premium dollars," says O'Brien.
The Wrexham-based listed company, whose products include its Volplex blood plasma replacement and its OptiFlo range of catheter cleansing products, reported retained losses
of pounds 663,760, a fall of 41% on the previous year.
The potential cost of risk for an organization includes: the internal risk management department, outside consultants, retained losses
(such as deductibles), insurance premiums and indirect costs, such as loss of productivity, cost of overtime and opportunity costs.
For the first time in six years, flat premiums and substantially higher retained losses
have driven up the average cost of risk in the U.
Cost of risk is the sum of all insurance premiums, retained losses
, allocated loss adjustment expense and administrative expenses.
The savings that may be generated by a self-insurance program are computed by comparing premiums that would have been paid with the retained losses
7% of company's total equity, excluding Pemex policy in which retained losses
can reach 4%.
QBE says its preliminary estimation of retained losses
from Sandy is between $350 million and $400 million.
The obvious purposes of an actuarial report include a reserve estimate to support the company's financial statements and an estimate of retained losses
for the upcoming year to support the company's budgeting process.
For example, an aggregate catastrophe cover would pick up the accumulation of retained losses
above either a dollar or loss ratio retention.