Bouska

PEBLE
- Policiy-event based loss estimation: estimates losses by comparing event outcomes directly to the applicable individual policy terms in order to estimate the potential loss to the policy
- Consists of 2 elements: loss event that might give rise to an ins clm; application of the terms of an individual policy to that loss event to estimate loss
- Mostly used for natural disasters, toxic tort models, auto warranty
PEBLE pictural representation
- ................Pol Terms -------------------------------\
- Pol data < ...............................................................Insured
- ................Exposures attributes \...............................Cost
- ................................................ Exp spec losses ---/
- Loss event ---------------------/
Issues in using PEBLEs
- External processes and data (require massaging)
- Black box: does not have "hands on" nature of triangle
- Validation and usability
- Parametrization (possible to over-parametrize)
- Cost/Benefits
- Updates
Advantages of PEBLEs
- Clarity
- Better understanding of loss process
- Documentation of overall changes
- Scenario testing
- Understanding variation

Author

Esaie

34008

Card Set

Bouska

Description

Exam6 by Esaie Bouska

Updated

2010-09-11T12:57:39Z

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