Other Project Accomplishments

In addition to descriptions of the Marketplace (before summer 2015) and Reinsurance, this page summarizes additional project accomplishments.

Our Rating Engine

The academic years 2013-2015 were devoted to gathering fund data for our analysis, familiarizing ourselves with fund participants, and developing a rating engine to be used to develop premiums. We summarize our work during 2013-2015 with a rating engine in the final report "FinalReport10July2015.pdf".

Testing and Additional Fund Support

For academic year 2015-2016, our emphasis was on assisting testing the rating engine and additional supporting projects. Specifically, we looked at:

• • Premium testing under proposed rating engines

  • Base premium testing

  • Premium sensitivity analysis

Naturally, a number of things arose during the year that peaked our interest and that we did not have time to address adequately. These included:

• • Flood coverage analysis

  • Boiler and machinery coverage design

  • Hail and straight-line wind analysis

  • Water treatment facilities rating analysis

Please see our summary report.

Research

Throughout this project, we have continuously sought answers to issues potentially faced by the fund and similar insurance pools. Please see our Research Projects page for more details about these projects that were motivated by the Local Government Property Fund. These include studies in which we:

• • develop an algorithm for rating fund endorsements that is consistent with sound economic, risk management, and actuarial practice.

  • document the effects of dependencies between the number and amount of insurance claims as well as among the different lines of business

  • introduce a tool for helping the fund manager identify the best and worst risks in terms of opportunities for risk management.

Other studies are in process.

Teaching

We also intend to introduce the Property Fund into our general actuarial curriculum, both here at Wisconsin and internationally. This will help to familiarize the insurance community with the specific issues faced by local government insurers.

Specifically, the property fund is the featured case study in a new chapter entitled Introduction to Loss Data Analytics. This is the lead chapter for an open textbook that is being developed by the actuarial community entitled Loss Data Analytics.