New York–Pricing actuaries face a number of tough challengesbeyond sparring with underwriters over how much they can dropinsurance rates when property-casualty markets turn soft, a veteranof the process said.

William Miller, senior vice president and actuary for ACE USA inPhiladelphia, told colleagues attending a meeting of the CasualtyActuaries of Greater New York here last week that issues likeeroding claims-handling standards and requests to set prices fornewly launched coverages are among the many concerns that can causeheadaches for actuaries as the market softens.

Often during a soft market some of the controls and processesaround the claims function get eroded, Mr. Miller said. Insurers,he noted, may be more apt to allow the insured to self-administertheir own claims or to have a say in the third-party administrationselection–a situation less likely during a hard market.

Continue Reading for Free

Register and gain access to:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.