This afternoon was filled with a slew of informational sessions for those attending the RIMS 2009 conference.

One such session was Risk Financing 1 2 3, an informative presentation regarding incurred but not reported claims (IBNR), loss development, net present value and discovery and payout patterns.

The session was hosted by Barbara Benson Grinnell, vice president of Willis HRH, Joyce Armstrong, director of risk management for Scotts Miracle Grow and Scott Silitsky, risk manager for ThyssenKrupp Elevator Co.

Grinnell opened with the idea of basic loss development and using the growth patterns of historical losses to predict ultimate losses on policy years that are still open and developing.

Using workers comp loss mathematical models, she explained the calculations that risk managers require to give their CFO the information needed.

Dovetailing from Grinnell’s presentation, Armstrong spoke about the risk financing continuum and moving from risk transfer to risk retention with guaranteed cost, large deductibles, qualified self-insurance and captives.

The session concluded with a case study of net present value of guaranteed cost and self-insurance — important for risk managers in every line of business.

Stay tuned for more conference coverage coming your way.