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Dollarbased vs Countbased ULAE methods
 Dollarbased assumes ULAE tracks w. loss dollars
 Countbased assumes that same kind of transaction vost same amt of ULAE
 Divergent assumptions may not affect results severely (only need to be correct for the avg)

Classical pd to pd ratio for ULAE
Generally assumes that 50% of ULAE occurs when clm is rpt, and 50% when it's closed

Kittel's refinement for ULAE
 Explicitely recognize the fact that ULAE is inc as clm as rpt, even when no loss pmt are made
 Use ratio of pd ULAE to ½*(pd + inc)

Generalized approach to est ULAE
 Definitions
 U_{1/2/3} = & of ult ULAE spent on opening/maintaining/closing
 R/C/P = ult cost for clms rpt, closed, pd
 W = ratio of ult ULAE to ult losses
 M = total ULAE for period
 B = loss basis for period
 Formulas
 M = (R*U1*W) + (P*U2*W) + (C*U3*W)
 B = M / W
 Final result
 Approach similar to ELR: Unpd ULAE = (W^{*}* L)  M
 Approach similar to BF: Unpd ULAE = W^{*} * (L  B)
 Approach similar to dvpmt: Unpd ULAE = M * (L / B  1)

Generalized approach to est ULAE
Practical difficulties
 Inconsistencies in the reporting of clm adj exp
 Estimation of R and C may not be trivial
 Ignores cost of reopening and reclosing
 Loss inflation can cause material distortions

