Gross Consulting has independently analyzed the Schedule P triangles of over 700 property casualty insurance organizations, using a proprietary reserving model. Below is a graphical summary of the ratios of our estimate of reserve need vs. carried reserves across organizations. As you can see, we estimate a wide range of adequacy for carried reserves at the end of 2005.
Although any analysis based solely on such aggregated data has limitations, trends do emerge across organizations, and in some situations may indicate the need for a closer look at company reserves. Also, since the analyses were performed at the accident year level, additional insight about true recent profitability can emerge. The analysis is available for each of the companies we have analyzed, separately for 17 business lines.
If you have interest in the ways that the detailed information underlying this analysis could be of use to you and your organization, please contact us. We would also be happy to discuss the methods used to arrive at these estimates, as well as other issues regarding the property casualty insurance marketplace.