In return for paying future claims on losses specified in insurance contracts, insurers receive premiums from policyholders in advance. However, the actual losses are not known for some time. Therefore, a method to estimate the expected liability is needed so that the insurer can calculate the profit of written policies and allocate reserved assets to ensure liquidity.
During the past decades, loss reserving has become a sophisticated and developed field in the insurance industry. T
The week on Risk.net, December 2–8, 2017Receive this by email