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Actuarial Control Cycle - Coggle Diagram
Actuarial Control Cycle
Specifying the Problem
Identify Key Stakeholders
Policyholders/ Shareholders/ Employees
Conflicts of interest around them
Identify Risks
Claims Sources
Likelihood & Severity of claims
Measurable Objectives
Market Share
Profit
Loss Ratio
Consider How to Manage Risks
Reinsurance
Diversification
Developing a Solution
Alternative Solutions
Stress & Scenario Testing
Implications to key Stakeholders
Formalize Proposal
Commmunicate results to stakeholders
Data
Homogeneous Groups
Assumptions
Claim Amount & Frequency
Reserving Basis (Prudency)
Mortality (Underwriter)
Assets to Match
Model
Current mode/ New model
Deterministic/ Stochastic
Compare against competitors
Monitor Results
Review External Environment
Changes to competitors
Feed back into the control Cycle
Exit market if profit isn't enough
Improve data
Actual vs Expected
Claims
Premiums sufficient for claims
Sales Volume
Reasons for deviations
Random Fluctuations
Incorrect Assumptions
Trends in the Market