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13 Cards in this Set
- Front
- Back
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frequency-severity in generic terms: |
Any reserving method that projects the frequency and severity separately when estimating ultimate losses |
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What do n and N represent in the frequency severity method? |
incremental and cumulative frequency (claim counts) |
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What does x represent in the frequency severity method? |
incremental severity (l/n) |
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What do l and L represent in the frequency severity method? |
incremental and cumulative losses |
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What does X represent in the frequency severity method? |
Cumulative severity (L/N) |
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What are the two methods of the frequency severity method? |
Alternate and closure |
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What is the alternate method that is part of the frequency severity method? |
A simple method that involves applying the chain ladder technique to claim counts and average losses separately |
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What does Nult represent in the frequency severity method? |
Ultimate claim counts |
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What does Xult represent in the frequency severity method? |
Ultimate average losses |
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What does Lult represent in the frequency severity method? |
Ultimate losses |
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What is the closure method of loss reserving? |
We analyze the rate of claim count closure and the incremental severity at each age. This means we will be estimating n and x in order to estimate l |
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Does the alternate method use cumulative age loss payments or incremental? |
Cumulative |
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Does the closure method use cumulative average loss payments or incremental average loss payments? |
Incremental average loss payments |
