Loss Development Factors: A Primer for Captives

Michelle Bradley, ACAS, MAAA, ARM, CERA, CCIS, Consulting Actuary and Enoch Starnes, ACI, Captive and Complex Risk Consultant

Michelle Bradley and Enoch Starnes recently authored an article for Captive International titled “Loss Development Factors: A Primer for Captives”. In it, they summarize the basic attributes of loss development factors, discuss their impact on retained risk, and respond to common questions regarding their use.

While the SIGMA team has written in the past about the ways in which one might track loss development for captives, we believe an opportunity has presented itself to acquaint new entrants to the captive insurance landscape with one of the core concepts that must be understood when retaining risk at any level: Loss Development Factors.

Click to view the article

SIGMA’s An Actuarial Advantage book provides a summary of Loss Development Factors, and discusses how they are a critical part of any actuarial analysis. While the process of determining these factors is often misunderstood, An Actuarial Advantage proves to be a vital resource for interpreting Loss Development Factors, Loss Development Triangles, and even IBNR.

Click to request a PDF or printed copy

We welcome your feedback by posting a comment or contacting us at support@SIGMAactuary.com.

© SIGMA Actuarial Consulting Group, Inc.

Leave a Reply

Your email address will not be published. Required fields are marked *

Archives

Recent Posts

Actuarial Solutions for Managing Risk in the Transportation Industry
The transportation industry, a vital backbone of the global economy, is characterized by its complexity and inherent risks. From logistics and supply chain management to passenger transport and freight services, companies within this sector face a multitude of challenges. These challenges include sh...
Read More
SIGMA's 2024 Highlights
Obstacles and market uncertainty are no stranger to the insurance industry, and 2024 was no different. Despite this uncertainty, our team here at SIGMA persistently directed its focus towards growth, education, and delivering exceptional service to our clients. We were very fortunate to have been re...
Read More
Evaluating, Establishing, and Optimizing a Captive Insurance Program
Michelle Bradley and Enoch Starnes were recently interviewed by Captive Insurance Times to discuss how to successfully set up and manage a captive program. If you or your organization is considering captive insurance options, you won't want to miss the expert insight found in their recent article. Q...
Read More
Captive Analytical Strategies for Mergers and Acquisitions
In a recent article published by Captive International, Michelle Bradley and Enoch Starnes provide a guide to what needs to be addressed after companies with a captive are acquired or merged. Of the many considerations needed during mergers and acquisitions (M&A), one that may not be clearly def...
Read More

Subscribe to Our Blog



Copyright © 2023 – 2025 SIGMA Actuarial Consulting Group, Inc. All Rights Reserved.
chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram