PPOs are a significant feature of insurers' and reinsurers' balance sheets already and are having an impact on pricing and capital modelling efforts of GI actuaries. The Periodical Payments Orders Working Party has been at the forefront of advising GI actuaries about the impacts on their work, such as the need to use life insurance techniques in reserving.
The Periodical Payment Orders Working Party also conducts an annual survey of the UK motor insurance industry about their experience of PPOs. This has enabled:
- creation and publication of statistics about the number, quantum, and nature of PPOs as awarded by the courts
- qualitative feedback from the industry about their concerns and practices as regards to PPOs.
The Working Party will compile a mortality table of impaired lives due to brain and spinal injury following a severe trauma
The data is compiled from the UK medical research database of patient records as entered by GPs. Whilst cause of injury is not recorded we hope that the data will be sufficiently close to motor-related accidents that the mortality is a good match. To the best of our knowledge, this is the first time that such an investigation has been attempted. There is considerable call in the insurance industry for such analysis to help pricing, reserving and capital modelling.
The PPO working party operates within a terms of reference.
Periodical Payment Orders Working Party Outputs:
- Weighing the Options, Originally published by The Actuary, June 2021. © The Institute and Faculty of Actuaries
- PPOs - Market update - May 2021, GI Spring Conference, May 2021
- 2020YE Quantitative Survey Update - 8 February 2021
- 2020 PPO Working Paty Report (Industry Survey)
- PPOs - What's the market doing? - May 2020
- GIRO 2020 - PPOs - Hanging in there
- Update on the Actuarial Research Centre PPO Event, 20 February 2019
- Technical Issues in General Insurance (TIGI) 2019: D1: Pricing Workshop
- Technical Issues in General Insurance (TIGI) 2019: H4: Reserving Workshop
- GIRO 2019: D7 PPO Working Party Qualitative and Quantitative Surveys 2019
- GIRO 2019 PPO Working Party Report (Industry Survey)
- GIRO 2018 PPO Working Party Report (industry survey)
- GIRO 2018: Workshop C: IFoA PPO Working Party Update - Mortality
- GIRO 2018: Workshop F: IFoA PPO Working Party Quantitative Survey Update: PPOs - Down but not out
- Current Issues In General Insurance (CIGI) 2018 workshop B3: PPOs - What's the Market Doing?
- Reserving Seminar 2018 B1: PPOs - What's the Market Doing?
- GIRO 2017 PPO Working Party Report (industry survey)
- GIRO 2017 PPO workshop A2: PPOs – The end as we know it, or a new beginning?
- CIGI 2017 PPO workshop A2: What’s the Market Doing?
- GIRO 2016 workshop C8: PPO Mortality Recap
- GIRO 2016 workshop C8: PPO Mortality Analysis
- GIRO 2016 workshop D1: An update from the PPO Working Party
- Information for Actuaries Valuing Periodical Payment Orders: A helpful handbook
- Sessional Research Event: information for Actuaries Valuing Periodical Payment Orders
- Reserving seminar, 2016
- CIGI 2016
- GIRO 2016 Update Report (Industry Survey) [A prior version of the GIRO 2016 Update Report (Industry Survey) was previously available. We have updated Appendix Q, Mortality of PPO claimants. For further details please contact the working party. e: email@example.com]
2010 - 2015
- 2015 GIRO Survey Report
- GIRO 2015 Update Report
- GIRO 2015 C9 Workshop
- CIGI 2015
- Risk and Investment 2014
- GIRO 2014 Survey Report
- GIRO 2014 (A8)
- GIRO 2014 (B4)
- PPO Injury Categorisation (summary)
- PPO Injury Categorisation (sample spreadsheet)
- CIGI 2013
- GIRO 2013
- Constructing Impaired Life Mortality Tables and Severe Injury Classification (GIRO, 2013)
- Insurer, Reinsurer Opinions and Capitalisation Clauses (GIRO, 2013)
- CIGI 2012
- Breaking Research in Third Party Motor and PPOs (GIRO, 2012)
- Periodic Payment Order paper GIRO 2012
- Pricing Seminar 2012
- Presentations at the ABI & LMAG
- GIRO 2011
- Periodic Payment Order paper revisited 2011
- Momentum 2011
- Pricing seminar 2010
- GIRO 2010
- Periodic Payment Order paper 2010
- 9 November 2017
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