Expected Claims Technique
Expected claims is a way of determining the expected loss ratio (ELR) based on how much money earned from premiums an insurer should set aside to pay for future claims. The amount is not fixed, but based on probability and actuarial forecasts that attempt to predict the number and severity of claims the insurer will have to pay.
- 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.