Statistical Methods Of Estimating Loss Reserves In General Insurance

Ion Partachi (), Oleg Verejan, Marcel Bradu and Victoria Verejan
Additional contact information
Ion Partachi: Academy of Economic Studies of Moldova, Chisinau, Moldova
Oleg Verejan: Academy of Economic Studies of Moldova, Chisinau, Moldova
Marcel Bradu: Academy of Economic Studies of Moldova, Chisinau, Moldova
Victoria Verejan: Academy of Economic Studies of Moldova, Chisinau, Moldova

Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice (1954-2015), 2010, vol. 2010SE, 357-371

Abstract: Relevant estimation of loss reserves related to general insurance activity was and is one of the most important issues for insurance companies. Maintenance of loss reserves at the right level repre-sents the key condition of insurance monitoring authorities as the result of performance indicators of their activity depends on the value of these reserves. The forecasted value of future loss referred to prior events represents the loss reserve. In this paper, we present stochastic methods (Christofides method) of estimating the loss reserves, especially those of incurred but not reported reserves. The stochastic methods presented in the paper, in contrast to the determinist ones, adjust the result better and offer more information referring to the quality of data and exactness level of damage reserve forecast.

Keywords: loss reserves; stochastic models; deterministic models; incurred but not reported re-serves(IBNR); the Chain-Ladder method; run-off triangle; predicting future payments; the total estimated loss reserve; the confidence interval for future payments. (search for similar items in EconPapers)
JEL-codes: C40 C73 (search for similar items in EconPapers)
Date: 2010
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://anale.feaa.uaic.ro/anale/resurse/sta3partachi.pdf (application/pdf)
http://anale.feaa.uaic.ro/anale/ro/Arhiva%202010-P ... AN_BRADU_VEREJAN/335 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aic:journl:y:2010:v:se:p:357-371

Access Statistics for this article

More articles in Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice (1954-2015) from Alexandru Ioan Cuza University, Faculty of Economics and Business Administration Contact information at EDIRC.
Bibliographic data for series maintained by Sireteanu Napoleon-Alexandru ().