Measuring Market Risk Module 5 Assignment

In this assignment you will assume the role of a senior analyst hired by a fictitious company, Premium Acceptance, a midsized property insurance carrier. Premium Acceptance is performing well with respect to several key performance indicators, including policies in force, policy retention, and new business counts.

However, the company’s bottom line has been hindered due to poor loss ratios. A loss ratio is simply the difference between the ratios of claims paid by an insurance carrier and the ratio of premiums paid. The board of directors depends on the ability to forecast loss ratios, which in turn enables them to forecast profitability metrics to the shareholders. The organization will now consider implementing the use of statistics for measuring risks.

For this assignment, you will write a minimum three-page paper (not including APA title or references pages). In this paper, please address the following:

Provide a general overview of statistics and how they support the risk assessment process.
Discuss at least two statistical tools that can be employed to measure risk.
Convey which tool best serves the company’s purposes and explain why it is.
What are the ramifications of the organization electing not to use statistics in this process?
Be sure to include an introductory paragraph at the beginning and a concluding paragraph at the end of your paper.
Because your paper is required to be at least three pages in length, you should use subject headings to label your paper as appropriate.
Be sure to include APA citations to support your assertions and to inform your paper.
You will need to include an APA formatted reference page with this paper (separate from the body of your paper).
Be sure to proofread your paper to ensure that is free from all grammar and spelling errors.

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ADDITIONAL INSTRUCTIONS FOR THE CLASS

Discussion Questions (DQ)

Initial responses to the DQ should address all components of the questions asked, include a minimum of one scholarly source, and be at least 250 words.
Successful responses are substantive (i.e., add something new to the discussion, engage others in the discussion, well-developed idea) and include at least one scholarly source.
One or two sentence responses, simple statements of agreement or “good post,” and responses that are off-topic will not count as substantive. Substantive responses should be at least 150 words.
I encourage you to incorporate the readings from the week (as applicable) into your responses.

Weekly Participation

Your initial responses to the mandatory DQ do not count toward participation and are graded separately.
In addition to the DQ responses, you must post at least one reply to peers (or me) on three separate days, for a total of three replies.
Participation posts do not require a scholarly source/citation (unless you cite someone else’s work).
Part of your weekly participation includes viewing the weekly announcement and attesting to watching it in the comments. These announcements are made to ensure you understand everything that is due during the week.

APA Format and Writing Quality

Familiarize yourself with APA format and practice using it correctly. It is used for most writing assignments for your degree. Visit the Writing Center in the Student Success Center, under the Resources tab in LoudCloud for APA paper templates, citation examples, tips, etc. Points will be deducted for poor use of APA format or absence of APA format (if required).
Cite all sources of information! When in doubt, cite the source. Paraphrasing also requires a citation.
I highly recommend using the APA Publication Manual, 6th edition.