“For the higher limits of liability, the empirical data is sparse.”
ISO Circular AS-GL-1000-036
Review of ISO’s New ILF Tables
Review of ISO’s New ILF Tables
Truncation
Prem/Ops $4.0MM
Prod/Comp Ops 2.5MM
Review of ISO’s New ILF Tables
Large Loss Data
“ISO standard increased limit tables provide increased limit factors up to $10,000,000 per occurrence policy limits. We do not use the methodology described here to model losses above this point. We encourage the use of supplemental sources of information for analysis of higher limits.”
ISO Circular AS-GL-1999-036
Review of ISO’s New ILF Tables
Who’s Data Is It?
Excess & Surplus Lines Ins. Co.
St. Paul Surplus Lines
Lexington Ins. Co.
General Star
Scottsdale
Foreign Insurer
ACE
Lloyd’s
Starr Excess
XL
Review of ISO’s New ILF Tables
Umbrella and Excess Policies: Example 1
Primary Unknown Ins. Co.
$5MM x P SIR
$10 x 5 x P Various Ins. Co.’s
$10 x 15 x P Swiss Re
$75 x 25 x P XL
$100 x 100 x P Starr Excess
$100 x 200 x P ACE
Review of ISO’s New ILF Tables
Umbrella and Excess Policies: Example 2
$1MM Primary American National Fire
$25 x P National Union
$75 x 25 x P Lloyd’s
$100 x 100 x P XLE
Review of ISO’s New ILF Tables
Review of ISO’s New ILF Tables
ALAE Pro Rata
Flat ALAE Load Disappears with Difference in ILF Approach
Cession Premium
ALAE Load For Excess Loss Same as First Dollar Loss