Over the past year the major ratings agencies have expressed concern over challenges the Workers Compensation line has faced during the recession, as well as the continued pressures it faces in achieving long-term profitability. In its January briefing, Standard & Poors went so far as to describe Workers Comp profitability...
Traditional loss reserving methods that assume past loss development patterns will repeat produced initial loss estimate that were 25 percent too low for some years during the last soft market, say Guy Carpenter, arguing for the use of modern statistical approaches.
"Unknown" accumulations, on the other hand, have been more difficult to grasp. When employees across an insurance portfolio gather for conventions, additional catastrophic risk exposures begin to
