May be called initial step towards Portfolio Analysis, Segmental Analysis is nothing but to see the data in segments to see the trend which is not apparent when seen in totals.
In the analysis , Claim Frequency and Average claim size, burning cost as well as Loss Ratio is calculated according to different factors( rating Factors) like Location ,Age or may be different models.
In principle , following accruals principle , Earned premium should be compared to the claims that have occurred during the same period. Care should be taken , as for latest periods Claim experience seems to be better which actually is not the case as there are IBNR and IBNER cases which will increase the Claims.
Talking Actuarially , it is just the ONE WAY ANALYSIS which is a part of Premium Rating. Management sometimes like to see the data containing EILR. EILR meaning Earned incurred Loss Ratio. It is comparing Earned Premium with movement in Incurred during the time period.
2 comments:
Do you work as a actuarial analyst
yes i work as a an actuarial analyst in a general insurance company in India
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