This blog introduces a graphic that shows the pieces that make up “Ultimate Losses.”  The ultimate losses of a policy period will typically not be known for many years.  Actuaries are hired to estimate ultimate losses to help a company use appropriate reserve amounts for planning and financial statement purposes. Here are some definitions for […]

In the SIGMA Tech Talk titled “Understanding Loss Development Factors,” we introduced IBNR losses as those losses which occur during a loss period but are not reported until a later date. The definition of IBNR also typically includes development of known claims. In this article, we look further at the significance and calculation of IBNR […]