- 1. Type: Losses grouped according to date of occurrence, regardless of when pol written or claim reported.
- AY = PAID + ENDING CASE
Will develop over successive CYs with more information and as new claims are reported
Most common grouping of claims data for the actuarial analysis of unpaid claims
:Better match of premium and losses than calendar year
- 3. Disadvantages:
- Must estimate future development on claims
- May select valuation date several months after end of year to improve estimate because allows some time for loss emergence