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Provisions of Workmen Compensation Influences Competition04-04-2011

Provisions of Workmen Compensation Influences Competition

- The huge disparity Basic Techniques and criteria used in provisioning Accidents can produce distorted comparisons between insurance accounts;
- Forgetting the company over provisioning, the differences level of provisions among insurers may reach 69%;

- If there are companies that do not use actuarial methods to all liabilities and when they use them have bases
techniques for lower cost, they end up having insurance apparently a better accounting and solvency margin
greater competitive ability in most branches of insurance business;
- The consideration of general actuarial methods would certainly have some impact on management control of enterprises, whether by year of occurrence, either by calendar year, which would alter many
pricing decisions of some insurers.
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