December 15, 2025
In this article in IN magazine, Nicole Emmerling, Vice President, North American Actuarial Analysis, discusses how important it is to understand and select appropriate loss development patterns, especially for mutual carriers.
“Company stakeholders use loss development factors as key components of effective risk management, accurate reserving, and strategic decision-making,” Nicole explained. “While industrywide LDFs (loss development factors) are well established, mutual insurance companies exhibit unique characteristics, which differentiate their loss development patterns from those of the broader insurance industry.”
Guy Carpenter has been researching these mutual-specific characteristics, and the firm’s Mutual Large Loss Development Study provides further quantification and an analysis of these differences.
“The Mutual Large Loss Development Study leveraged Guy Carpenter’s robust data resources captured through its position as a mutual segment leader to quantify this market differentiation,” Nicole continued. “Adoption of this study’s results could lead to increased accuracy in reinsurance pricing and lay the foundation for greater credibility and acceptance among industry leaders and regulators.”