2012 Conference: Connecting Theory With Practice " 22 nd Annual - - PowerPoint PPT Presentation

22nd Annual CAA Conference Sheraton, Nassau, Bahamas November 14 - 16, 2012

2012 Conference:

“Connecting Theory With Practice"

An Analysis of Historic Motor Loss Ratios in the Caribbean

KR Services Limited Kyle Rudden FIA, FSA, ACAS, ACIB, FCCA, CA(T&T) Shogun Seupersad MSc

November 16, 2012

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Disclaimer

• This presentation is being made by Kyle Rudden of KR Services Limited (“the

presenter”). This presentation does not constitute professional advice or create a contractual relationship between Participant and the presenter or any of the

• rganizations with which he may be affiliated.
• Neither the presenter nor KR Services make any representation or warranty

concerning ideas, judgments, opinions, projections, analyses or estimates which the presenter provides to Participant.

• Any decision Participant may make to rely on such ideas, judgments, opinions,

projections, analyses or estimates provided as part of this presentation shall be at Participant’s own risk and Participant shall, in its sole discretion, decide to accept or reject or modify any ideas, judgments, opinions, projections, analyses

• r estimates provided, and all decisions made or actions taken or not taken shall

be the sole responsibility of the Participant who shall make an independent analysis thereof with Participant's own professional advisers.

• Neither the presenter nor KR Services, assumes any liability whatsoever,

whether explicit or implied, with respect to any part of this Presentation or with respect to any oral statement, including but not limited, to any facts, circumstances, assumptions, judgments, opinions, projections, analyses or estimates as may be contained in this Presentation. Where any information and statistics are quoted from any external source, such information or statistics should not be interpreted as having been adopted or endorsed by the presenter

• r KR Services as being comprehensive or accurate.

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Acknowledgements

• We would like to thank all the anonymous

data donors who made this presentation possible

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Purpose

• To highlight some features of Caribbean

motor insurance loss patterns.

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Caribbean Motor Insurance

• High retention levels
• Little or no proportional RI.
• Relatively high attachment XOL or CAT cover.
• Trinidad & Jamaica NPE/GPE 90-95%
• Small claim volumes / data issues limit analysis
• e.g. PD vs BI, Commercial vs Personal
• Premiums usually driven by market forces.
• No pre-approval or filing of rates.
• Typically legal requirement

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Ult Loss Ratios by Territory 2002-2011

30% 40% 50% 60% 70% 80% 2002 2004 2006 2008 2010 Loss Ratio Accident Year T&T Jam Bar Other

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Progression of Loss Ratio – Jamaica

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 2 4 6 8 10 Loss Ratio Development Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

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Progression of Loss Ratio – Trinidad

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 2 4 6 8 10 Loss Ratio Development Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

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Trinidad Motor LR Variation - Industry

1 2 3 4 5 6 7 < 30 30-39 40-49 50-59 60-69 >70 Number of Companies Loss Ratio (%) 2009 - 58% 2010 - 53% 2011 - 52%

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Questions

An Analysis of Historic Motor Loss Ratios in the Caribbean

KR Services Limited Kyle Rudden FIA, FSA, ACAS, ACIB, FCCA, CA(T&T) Shogun Seupersad MSc

November 16, 2012