GRIT Overview

1
GRIT Overview

• 12 September 2005
• Boston

2
About GRIT

• General insurance Reserving Issues Taskforce
• Terms of Reference
• Implications of Reserve Cycle Working Party
• How can we reduce chances of run off deficits
• Issues arising from the ongoing press debate
• Core Team Membership
• Peter Copeman, Lis Gibson, Tony Jones, Nick Line,
  
• Julian Lowe, Paul Martin, Peter Matthews, Dave
  Powell,
• Draft consultation paper produced

3
Segmenting the Challenge

1. Applying existing methods more consistently
2. Understand the Business Better
3. Improving our methods
4. Behavioural Issues and Third Party Influence
5. Respond to Uncertainty better
6. Measuring the past
7. Consulting our Membership
8. Consulting our Stakeholders

4
Scope

• Actuarial Assessment
• Vrs
• Selection for Purpose

5
Good News

• Actuaries have a very strong brand
• Reserving is interesting and exciting. It is the
  place to be.

6
Change Agenda

• Make reserving more transparent
• Give estimates of reserve uncertainty
• Processes to understand the business better
• Cycle-robust reserving methods
• How to counterbalance pressure
• Where to apply our methods more consistently

7
Implementation

• A change management process
• Reserving will be more work
• Communication programme with the industry
• Coordinate with CAS