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of losses. One of the most common ways to organize
the data is via loss development triangle. Each row in
the triangle represents a given accident year. The data
in each row represents a fixed group of claims.

The columns keep track of the losses at subsequent
evaluations for an individual accident year. Each column
represents the age of the accident year. Groupings other
than accident years can also be used.

In descending order of preference the rows can
represent report year, policy year ,underwriting year ,
quarterly , monthly or other fixed grouping of data. The
columns usually show annual intervals, but sometimes
quarterly intervals are also shown.

Q6. State the different approaches in reserve
estimation strategy.

Ans: The overall approach to reserve estimation strategy
involves four phases:
i) Exploratory analysis of the data- identifying key
characteristics and possible anomalies ,balancing of

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