Channel | Actuary, Featured Articles Are We Setting the Right Price? Posted on April 19, 2012 By: Lee Bowron, ACAS, MAAA As an actuarial consulting firm, we spend a lot of time deriving the specific cost for F&I products, both from an overall perspective and down to the granular level. For example, we develop models [...]
GAP – Where Do We Go From Here ? While publicly available data is not available for GAP writers, it is clear of that 2011 will go down as a profitable year for GAP Insurance. This is due to two factors: the lower leverage permitted by the credit markets and the high value of used [...]
Carrier and Administration Relations – Best Practices Hyundai recently announced an innovative program: a trade-in value program which guarantees the value of the customer’s car. Here is how the program basically works: ◦Buy a new Hyundai after May 1, 2011 ◦Perform all recommended service at a Hyundai dealer ◦Between 24 and 48 months, trade-in your [...]
Month-to-Month Vehicle Service Contracts Vehicle service contracts have traditionally been sold as a single pay product purchased at the time of vehicle purchase. While the typical retail charge for the vehicle service contract (VSC) can be in the thousands of dollars, the availability of the vehicle finance contract provides a ready source of funds to [...]
Hyundai’s New Trade In Value Guarantee Hyundai recently announced an innovative program: a trade-in value program which guarantees the value of the customer’s car. Here is how the program basically works: To read the entire article click on the link below: http://pa-magazine.com/featured-articles/hyundais-new-trade-in-value-guarantee/
GAP Insurance – Techniques and Challenges GAP (Guaranteed Asset Protection) insurance is an insurance product that insures the difference (if any) between the loan balance and the actual value of the underlying asset. Typically, this insurance is sold in conjunction with a traditional insurance product and guarantees that an insurable event will be sufficient to [...]
Designing new products is exciting but challenging. How do you estimate the losses or earn the premium? Have you considered how you are going to monitor the experience? Will a change in the economy impact the claims rates? http://pa-magazine.com/featured-articles/considerations-when-designing-new-products/
GAP typically earns on a Rule-of-78s basis. This article explains why you may be earning your premium too slow to accurately monitor your book. Read the http://pa-magazine.com/featured-articles/gap-is-there-hidden-equity-in-the-unearned-premium-reserve/ article at P&A Magazine.
Existing actuarial techniques for automobile warranty ratemaking and reserving rely heavily on emerging experience (loss development) for the pricing and unearned premium reserving of these products. Since terms for automobile warranties can extend up to 10 years, such data is typically not available or not credible to the degree that the actuary can take great [...]
