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Foundations of Casualty Actuarial Science

occurrence date or when the associated losses are
paid, provided the occurrence date is after
retroactive date. Claims paid policies cover the
losses paid during the policy period, regardless of
the associated occurrence or claim report dates.

(e) Loss components - Paid losses are losses that have
been paid. Outstanding losses, or case reserves are
estimates by the claim examiner of the remaining
amount required to settle particular claims, based
on the knowledge about those claims at a particular
date.

Both occurrence basis and claims-made basis
coverage need a reserve to reflect case reserve
development, to estimate ultimate costs.
Occurrence-basis coverage will need a reserve to
reflect unreported occurrences to estimate ultimate
costs.

Claims-made coverage will need a reserve to reflect
unreported claims if coverage is provided for

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