measurement – Page 3 – Twenty Third Floor

Actuarial and Risk, capital structure, financial reporting, financial risk, insurance, life insurance, market risk, measurement, Solvency Assessment and Management

Just what are ancillary own funds?

7 May 2019

David Kirk

Reading the Financial Soundness Standards for Insurers (FSIs) is an exercise that can only end in madness. I’m sufficiently familiar with them now that I mostly refer back to them for particularly tricky or thorny issues. Without fail, the words fail to clearly communicate exactly what was intended. Take ancillary capital as an example. To…
Read more: Just what are ancillary own funds?
Actuarial and Risk, life insurance, measurement, news, Solvency Assessment and Management, Solvency II, systemic risk

Move over cholera, here’s the Black Death

26 October 2017

David Kirk

The Black Death, caused by the bacteriumÂ Yersinia pestis, wiped out 30 to 50 percent of Europe’s population between 1347 and 1351 Now, South Africa has been placed on high alert for a potential plague infection. Mortality rates are estimated anywhere between 30% and 100% without treatment. Many estimates are towards the top end of this…
Read more: Move over cholera, here’s the Black Death
insight, measurement, modelling

Island Life

23 October 2017

David Kirk

There is a Mauritian insurer called Island Life. Best name ever for an insurance company. I firmly believe in anthropogenic climate change. I am not an expert, but my reading has convinced me of the seriousness of the issues, the overwhelming evidence that it is humans at fault. Having young children makes me seriously concerned…
Read more: Island Life
alternative investments, creating value, economics, Equity Risk Premium, investments, market risk, measurement, private equity

ERP update – delayed response to a blog reader

19 October 2017

David Kirk

I reader asked why so many practitioners use high Equity Risk Premiums in their valuations and fairness opinions. In particular, he mentioned a specific assumption set he had seen including: ERP of 6.8% company specific risk premium of 4% He also commented on how haphazard the use of risk premiums can be and referenced a…
Read more: ERP update – delayed response to a blog reader
Actuarial and Risk, complexity, data analysis, economics, insurance, measurement

ENID not Blyton

18 October 2017

David Kirk

ENID is a term widely used, just generally not in South Africa. For some reason we didn’t import the term along with most of Solvency II. This has nothing to do with the Famous Five. While it is most common in the general insurance space, it is relevant across the spectrum of risk management and…
Read more: ENID not Blyton
book reviews, FinTech, InsurTech, life insurance, measurement

Book Review: Loss Coverage – Why Insurance Works Betters with Some Adverse Selection

15 October 2017

David Kirk

In his book, Loss Coverage: Why Insurance Works Better with Some Adverse Selection, Guy Thomas propose an interesting point that adverse selection may not be as harmful as many actuaries believe. They actually go further and suggest that, at least from a policy perspective, adverse selection may be a good thing. This is particularly relevant…
Read more: Book Review: Loss Coverage – Why Insurance Works Betters with Some Adverse Selection
Actuarial and Risk, communication, complexity, Equity Risk Premium, insight, investments, life insurance, market risk, measurement, modelling

Modelling one side of a two-sided problem

13 October 2017

David Kirk

Ah models, my old friends. You’re always wrong, but sometimes helpful. Often dangerous too. A recent article in The Actuary magazine addressed whether “de-risking in members’ best interests?“Â I say “recent” even though it’s from August because I am a little behind on my The Actuary reading. In the article, the authors demonstrate that by…
Read more: Modelling one side of a two-sided problem
complexity, financial risk, insurance, life insurance, liquidity risk, managing uncertainty, market risk, measurement, operational risk

Systemic risk primary poll

10 October 2017

David Kirk

Read more: Systemic risk primary poll

Twenty Third Floor

Figuring out the future and the now

Category: measurement

Just what are ancillary own funds?

Move over cholera, here’s the Black Death

Island Life

ERP update – delayed response to a blog reader

ENID not Blyton

Book Review: Loss Coverage – Why Insurance Works Betters with Some Adverse Selection

Modelling one side of a two-sided problem

Systemic risk primary poll

About David Kirk

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