Reconciling Reserve Changes Video

Tony King

An actuarial reserve analysis examines a program’s loss-sensitive policy years in order to calculate a required reserve estimate for all claims incurred as of the evaluation date. This reserve estimate is a key component in determining collateral for self-insured and large deductible programs.

Since individual reserve estimates are evaluated at a specific point in time, the estimates will continuously change as payments are made and new claims are incurred. When comparing reserve estimates from two different evaluation dates (perhaps quarter or year-end), a reconciliation of the estimates may help illuminate any underlying trends and provide a more complete story of the changes. The Reconciling Reserve Changes video provides a solid basis in understanding the “walk” between reserve estimates so that the viewer may better understand and explain why a reserve estimate has changed.

We welcome your feedback by posting a comment or contacting us at support@SIGMAactuary.com.

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