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 […]

An underwriter once emailed me declaring that the IB and R load was too high on a particular account. I never had the heart to ask him what the letters I, B, or R signified in that statement, but obviously that must be what IBNR sounds like when pronounced too fast or with an accent. […]