Pembahasan Ujian PAI: A40 – No. 4 – Juni 2016

A few of the forecasting techniques that insurers use include qualitative methods, trend predictions, and regression analysis:

• Qualitative methods rely on the judgment of managers, who use their own experience and understanding of current economic conditions to make predictions.
• Trend predictions rely on historical data to reveal sales and investment trends, and the use these trends to predict future performance.
• Regression analyses rely on the knowledge of how the fluctuations of a known, dependent variable, such as disposable income, impact an unknown variable, such as sales

^[1] Mulligan, E. and Stone, G. (1997). Accounting and financial reporting in life and health insurance companies. Atlanta, Ga.: Life Management Institute, LOMA.