Justifying $50M Incurred But Not Reported (IBNR) Casualty Loss Reserves
CFOs push back on actuarial reserve increases because they reduce reported quarterly net income. Here is how Appointed Actuaries defend conservative IBNR casualty reserves.
Amit KasliwalCEO & Founder, Dehurdle
August 01, 20224 min read
The Actuarial IBNR Defense Script
Recommended Spoken Script
What to say to the CFO: "Social inflation and rising commercial litigation nuclear verdicts have extended the casualty tail. Our Bornhuetter-Ferguson loss development models indicate commercial auto loss severity has grown by 14% year-over-year. Increasing our IBNR reserves by $45M today prevents severe statutory insolvency audits and ensures our A- rating with A.M. Best."
The 2-Minute Practice Drill
2-Minute Spoken Drill
The 2-Minute Practice Drill
Practice actuarial reserve defense in Dehurdle.