Main Content

linkRatioAverages

Compute link ratio averages for developmentTriangle object

Description

example

LinkRatioAveragesTable = linkRatioAverages(developmentTriangle) calculates different link ratio averages.

Examples

collapse all

Calculate different link ratio averages for a developmentTriangle object containing simulated insurance claims data.

load InsuranceClaimsData.mat;
head(data)
ans=8×4 table
    OriginYear    DevelopmentYear    ReportedClaims    PaidClaims
    __________    _______________    ______________    __________

       2010             12               3995.7          1893.9  
       2010             24                 4635          3371.2  
       2010             36               4866.8          4079.1  
       2010             48               4964.1            4487  
       2010             60               5013.7          4711.4  
       2010             72               5038.8          4805.6  
       2010             84                 5059          4853.7  
       2010             96               5074.1          4877.9  

Use developmentTriangle to convert the data to a development triangle, which is the standard form for representing claims data.

dT = developmentTriangle(data)
dT = 
  developmentTriangle with properties:

                          Origin: {10x1 cell}
                     Development: {10x1 cell}
                          Claims: [10x10 double]
                  LatestDiagonal: [10x1 double]
                     Description: ""
                      TailFactor: 1
    CumulativeDevelopmentFactors: [1.3069 1.1107 1.0516 1.0261 1.0152 ... ]
               SelectedLinkRatio: [1.1767 1.0563 1.0249 1.0107 1.0054 ... ]

Use the linkRatioAverages function to calculate different link ratio averages.

LinkRatioAveragesTable = linkRatioAverages(dT)
LinkRatioAveragesTable=8×9 table
                                          12-24     24-36     36-48     48-60     60-72     72-84     84-96    96-108    108-120
                                          ______    ______    ______    ______    ______    ______    _____    ______    _______

    Simple Average                        1.1767    1.0563    1.0249    1.0107    1.0054    1.0038    1.003    1.002      1.001 
    Simple Average - Latest 5              1.172     1.056    1.0268    1.0108    1.0054    1.0038    1.003    1.002      1.001 
    Simple Average - Latest 3               1.17    1.0533     1.027    1.0117    1.0057    1.0037    1.003    1.002      1.001 
    Medial Average - Latest 5x1           1.1733    1.0567    1.0267    1.0103     1.005     1.004    1.003    1.002      1.001 
    Volume-weighted Average               1.1766    1.0563     1.025    1.0107    1.0054    1.0038    1.003    1.002      1.001 
    Volume-weighted Average - Latest 5     1.172     1.056    1.0268    1.0108    1.0054    1.0038    1.003    1.002      1.001 
    Volume-weighted Average - Latest 3    1.1701    1.0534     1.027    1.0117    1.0057    1.0037    1.003    1.002      1.001 
    Geometric Average - Latest 4            1.17     1.055    1.0267     1.011    1.0055    1.0037    1.003    1.002      1.001 

Input Arguments

collapse all

Development triangle, specified as a previously created developmentTriangle object.

Data Types: object

Output Arguments

collapse all

Link ratio averages, returned as a table. The table shows Simple Average, Medial Average, Geometric Average, and Volume-weighted-average.

More About

collapse all

Link Ratio Averages

The link ratio average is the average of the link ratios or the age-to-age factors.

Introduced in R2020b