Common Mistakes Using Loss Development Factors
By Michelle Bradley, ACAS, MAAA, ARM, CERA, CCIS on July 6, 2011
The narrative support to an actuarial report or analysis normally contains a summary of loss development and loss development factors similar to this: The ultimate cost of claims reported in a specific time period is usually not known until several years after the close of that period. Therefore, loss development factors are used to project […]
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