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Kemper Presents on Pricing and Reserving


On Thursday, October 21st, Kemper joined the Actuarial Club for this year’s first employer presentation. The company representatives, Denver Baker (UW Class of 2021), David Farino, and Maddy Ferrari, discussed pricing and reserving actuarial work.


The representatives began with an overview of Kemper, including the four lines of insurance they offer to cover home, auto, life, and health. They showed Kemper’s spread across the country and where each specialty was concentrated. They then moved on to the main topics, pricing and reserving.


Kemper’s representatives talked about how pricing work involves both rate making and filing, which consist of working with ratios and analyzing customer claims to adjust and determine rates in order to meet customer needs and tastes. The presenters highlighted the different health policies offered, major medical and supplemental, and spoke about the company’s experience development and monitoring work which deals with fluctuations and ensures the company is maintaining important ratios with its pricing work.


Reserving work was the next big topic. We learned that a reserve is a liability held by a company to fulfill promises to policyholders when claims are filed to ensure a company has solvency. There are different requirements for company reserves according to both GAAP and statutory regulations. The representatives then explained the types of reserves held by Kemper. The Active Life Reserve is maintained to prepare for future customer claims and provide stability for the company long-term. The claim reserves are set aside to pay claims which have already been filed or are anticipated to be filed soon.


Finally, the presenters gave an overview of Kemper’s internship program and the opportunities available in order to encourage students to apply. They spoke of various features such as professional development courses, an intern capstone project, and executive learning classes. The Actuarial Club sincerely thanks Kemper, Denver, David, and Maddy for taking the time to speak with our future actuaries! We enjoyed learning about important actuarial work and hope to hear from them again soon!


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