Page 92 - ic92 actuarial
P. 92

The Insurance Times

              occurrences reported during a particular period,
              since all claims associated with an occurrence may
              not be reported at the same time. The unreported
              occurrence/claims reserve is the true IBNR
              (incurred, but not reported) reserve.

              Reported losses refers to the sum of payments plus
              case reserves. Unreported losses refer to the case
              reserve development plus unreported occurrences/
              claims reserve. Incurred losses refer to the sum of
              reported and unreported losses. Case reserves are
              sometimes used when reported losses are meant.
              Many entities refer to reported losses as incurred
              losses, and unreported losses as IBNR.

         (f) Frequency and severity - Frequency is the number
              of occurrences or claims per exposure unit.
              Frequency is a relative, not an absolute measure.
              Severity is the average loss per claim.

Website: www.bimabazaar.com Call: 033-22184184 /40078428  92

Copyright@ The Insurance Times. 09883398055 / 09883380339
   87   88   89   90   91   92   93   94   95   96   97