By Stéphane Loisel
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STÉPHANE LOISEL holds a PhD in applied mathematics from the University of Lyon, an MSc in actuarial science and finance, and is a fellow and former member of the board of the Institut des Actuaires. He is now full professor and head of LSAF research lab at ISFA, Université Lyon 1.
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In insurance, it is important to continuously monitor actuarial assumptions, and particularly the ones regarding claim frequency. If one does not react quickly enough to a claim frequency increase, then one may face adverse selection. In the case of a claim frequency decrease, competition is at stake.
Disclaimer:
This article represents the opinion of the author, and not necessarily the opinion of the AAE.
This article was published in The European Actuary No. 26 – June 2021
