ACTUARIAL ANALYSIS FOR ARTISAN CONTRACTORS GL PROGRAM (RFQ)

PLEASE NOTE YOU NEED TO BE AN TRAINED ACTUARY WITH A MINIMUM OF 5 YEARS EXPERIENCE!!! I hope this message finds you well.
I am an insurance broker based in the USA, currently developing an insurance program providing general liability (GL) insurance for artisan contractors operating across approximately 40 states.
I am seeking an actuarial report to demonstrate the profitability of this program as part of my efforts to secure partnerships with a fronting insurance company and a reinsurance company.
The report should evaluate the program's historical performance, project future losses, and confirm pricing adequacy based on the available data.
Below, I outline the primary approaches for the analysis and suggest alternative methodologies in case any data gaps arise.
Program Overview.
• Name.
Artisan Contractors CGLa • Target Market.
Artisan contractors across 40 states • Rating Basis.
Gross receipts • Policy Forms.
The policies are ISO-based with a combination of ISO and proprietary endorsements.
• Role.
I will act as the Program Manager, responsible for rating, quoting, and binding general liability policies.
• Historical Data Available.
o Gross Written Premium (GWP).
I have 7 years of premium data.
o Loss History.
I have loss runs distributed across 12 insurance companies.
o Pricing Basis.
The pricing structure is based on an existing program provided by one of the carriers.
Request for Services.
I am requesting an actuarial report with the following components, along with alternative approaches that can be used if certain data is insufficient or incomplete.
________________________________________ 1.
Profitability Analysis.
• Primary Approach.
Based on the 7-year historical premium and loss data, please assess the overall profitability of the program, with a focus on the estimated loss ratio (target X%).
• Alternative Approach.
If historical data lacks necessary detail, you can supplement the analysis using industry benchmarks for artisan contractors' GL insurance to estimate profitability and compare performance.
2.
Loss Development and Trend Analysis.
• Primary Approach.
Utilize standard loss development triangles, incorporating data on claim amounts, reserves, and claim closure dates, to project future losses and analyze claims development over time.
• Alternative Approach.
If detailed claim reserves or loss triangles are unavailable, consider applying trend analysis on incurred losses based on past performance, using industry data to guide future loss projections.
3.
Premium Projection and State/Class Code Breakdown.
• Primary Approach.
Use the provided premium data, projected out based on historical growth trends, and break it down by state and class code.
• Alternative Approach.
If premium data by state or class code is incomplete, use aggregate premium growth and loss trends across the entire book, or apply industry-wide data on premium growth for artisan contractors to estimate expected future premiums.
4.
Pricing Adequacy and Benchmarking.
• Primary Approach.
Assess the current pricing model and confirm whether it adequately reflects the risk profile.
Please provide recommendations for adjustments if necessary.
• Alternative Approach.
If detailed pricing data is insufficient, you may benchmark against similar contractor GL programs in the industry, using loss ratios and rate adequacy from comparable programs to confirm pricing.
5.
Loss Ratio Projections by State and Class Code.
• Primary Approach.
Determine the expected loss ratio for the program, broken down by state and class code.
• Alternative Approach.
If the loss data does not contain sufficient state or class code details, you can use industry loss ratios or frequency/severity data for the most common artisan contractor trades, along with geographic trends, to estimate future losses.
6.
Expense Ratio Adjustments.
• Primary Approach.
Use the actual expense ratios provided, including acquisition costs, underwriting expenses, and claims management costs, to assess program profitability.
• Alternative Approach.
If detailed expense data is unavailable, please apply industry-standard expense ratios for similar contractor GL programs or make reasonable estimates based on known overhead costs in the artisan contractor insurance sector.
7.
Reinsurance and Retention Structures.
• Primary Approach.
Utilize loss history data to determine optimal retention levels and reinsurance layers for the program.
• Alternative Approach.
If loss data is insufficient for modeling reinsurance structures, consider using stochastic simulations or industry-standard retention and reinsurance guidelines for small-to-medium-sized contractor GL programs to propose appropriate reinsurance and retention structures.
8.
Catastrophe Exposure and Large Loss Adjustments.
• Primary Approach.
Incorporate any available large loss data and catastrophe-related claims history to refine loss projections and adjust pricing where necessary.
• Alternative Approach.
If large loss or catastrophe data is not robust enough, consider applying catastrophe models or industry-standard loss loadings for potential natural disaster risks in key geographic areas (e.
., hurricane-prone states).
9.
Scenario Analysis.
• If there is uncertainty in any data, I would appreciate it if you could run several scenarios to estimate potential outcomes for the program.
o Best-case scenario.
Assuming a positive loss ratio trend and stable growth.
o Moderate scenario.
Based on current trends and industry benchmarks.
o Worst-case scenario.
Considering potential adverse developments in claims or economic conditions.
________________________________________ Supporting Data and Materials.
I will provide you with.
• 7 years of gross written premium data for the book of business.
• Loss runs distributed across 12 insurance companies.
• Pricing structure based on an existing contractors' GL program.
• Any additional available details on expense ratios, underwriting guidelines, and claims handling procedures.
Timeline.
Please provide an estimated timeline for the delivery of the report and pricing quotation based on the scope of work outlined above.
Next Steps.
Please confirm any additional information you require to begin the analysis and provide an estimate for completing the report.
I am open to discussing the details further or clarifying any part of the program or data.
Thank you for your consideration and I look forward to working with you.
Estatísticas Ciência de Dados Contabilidade ID do Projeto.
# Sobre o projeto 8 propostas Aberto para ofertas Projeto remoto Ativo em 1 hora atrás