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Expected Claims Technique

Create an expected claims model and run suite of tools

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.

Objects

expectedClaimsCreate expectedClaims object

Functions

ultimateClaimsCompute projected ultimate claims for expectedClaims object
ibnrCompute IBNR claims for expectedClaims object
unpaidClaimsCompute unpaid claims estimates for expectedClaims object
summaryDisplay summary report for different claims estimates

Topics

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.