Main Content

Development Triangle

Create a development triangle model and run suite of tools

A development triangle is a table that shows changes in the value of various cohorts over time. Development for any of these cohorts (for example, accident year claims) is the change in the value for the cohort over time.

Objects

developmentTriangleCreate developmentTriangle object

Functions

viewDisplay developmentTriangle object
linkRatios Compute link ratios for developmentTriangle object
linkRatiosPlot Plot link ratios for development triangle
linkRatioAverages Compute link ratio averages for developmentTriangle object
cdfSummary Compute CDFs to ultimate claims for developmentTriangle object
ultimateClaimsCompute ultimate claims for developmentTriangle object
claimsPlot Plot claims for development triangle
fullTriangle Display full development triangle including ultimate claims

Examples and How To

Mean Square Error of Prediction for Estimated Ultimate Claims

This example shows a workflow for estimating ultimate claims using a developmentTriangle object with simulated reported claims and then calculating the corresponding mean square error of prediction (MSEP).

Bootstrap Using Chain Ladder Method

This example shows how to apply a chain ladder bootstrap method to generate several developmentTriangle objects to estimate the ultimate claims.

Concepts

Overview of Claims Estimation Methods for Non-Life Insurance

Unpaid claims estimation using development triangle, chain ladder, expected claims, Bornhuetter-Ferguson, and Cape Cod methods.