Kerper and Bowron LLC

400 Vestavia Parkway, Suite 131

Birmingham, AL 35216                   205-588-4028 (Main)

© 2019 by Kerper and Bowron LLC

March 8, 2007

Existing actuarial techniques for automobile warranty ratemaking and reserving rely heavily on emerging experience (loss development) for the pricing and unearned premium reserving of these products. Since terms for automobile warranties can extend up to 10 years, such data is typically not available or not credible to the degree that the actuary can take great reliance on it.  In addition, changing coverage terms in the auto warranty products can often make past development even less...

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