Page 174 - ic92 actuarial
P. 174
The Insurance Times
The resultant reserve estimate based on average paid
data helps us to correct past aberrations in paid claims,
which was not noticeable from the aggregate paid or
incurred histories. This provides an example of the
necessity of using several methods in investing reserve
needs.
b) Average Incurred Claim Projection - A projection
can be made of the average amount of loss incurred per
reported claim less claim counts closed with no payment.
The analyst then chooses several development patterns
most likely to occur. Then based on the chosen factors,
the complete projection of average incurred losses by
accident year may be completed.
c) Triangular Method - The most common methods used
to estimate ultimate loss levels consist of tracking the
history of a group of claims with similar definitional
groupings. The data in this loss format is arranged in the
form of triangle.
Each undeveloped loss year is projected to its expected
Website: www.bimabazaar.com Call: 033-22184184 /40078428 174
Copyright@ The Insurance Times. 09883398055 / 09883380339
