Sitemap Contact
   
 
 
How DFA Can Help the Property/Casualty Industry, Part 4
Hurricanes Katrina, Rita, Wilma...
Catastrophes: Models and Reserving
Risk Measures
Reinsurer Results:
Catastrophe and Strengthening
Hurricanes: 2003 and 2004 Results, Clustering and TransitioninG
Brushfire and Fire Following Exposures
Tsunami Exposure Worldwide and U.S.
Wind and Hail: Relative Hazard Levels
Cat Modeling Class
Introduction to Reinsurance
Holborn Technical Seminar
Catastrophe, Injury, and Insurance
Review of Myers & Read ARIA Paper
Technical Critique
Allocation Semantic Issue
Equivalent Risk Semantic Issue
Alternatives to CAPM
Review
A Perfectly Ordinary Tuesday Morning
This is Not Your Father’s Cat Model
Global Warming and Increased Catastrophes?
Reinsurer Risk Loads from Marginal Surplus Requirements, PCAS LXXVII
Reinsurance Markets
Risk Transfer Assessment
Introduction to Asset Returns and Risks
CAS Call Paper Panel
Ceded Reinsurance Issues in DFA
Catastrophe Reinsurance Simulation Game
Reinsurance by any other name
Clash Pricing
ALLOCATION OF SURPLUS FOR A MULTI-LINE INSURER
Optimization to Improve Business Performance

 

 
May 20, 2003
Paul Kneuer
Marco Island, FL
 

Allocation Semantic Issue

The Joy of Allocated Cooking
Serving Suggestion for Pound Cake

Last digit of Diners’ Soc. Sec. #
Suggested Portion
  0, 1 Greased pan (please return clean)
  2, 3 Sifted flour (2 ½ cups)
  4, 5 3 beaten eggs with vanilla extract to taste
  6, 7 Sugar, Shortening mixture
  8, 9 Use of 325 degree oven for 25 to 30 minutes

Note: Diners who combine portions will be disapproved!

Allocated Pound Cake (Example)

Allocation - Another Example

Would you like a free cellphone?

  • On a network with one ground station (in Pierre, S.D)

The ratio of ground stations-to-users is much better than MCI's, Sprint's or Verizon’s.

Allocation - An Insurance Example

Is Automobile Collision coverage for your car from State Farm Mutual for today

the same things as

Coverage from me for the rest of the day with a Surplus commitment of $3?

The allocated Surplus is the same, about $1,000 per year, per coverage, or $3 per day.