Common Mistakes Using Loss Development Factors
By Michelle Bradley, ACAS, MAAA, ARM, CERA, CCIS, Consulting Actuary 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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