TY - JOUR
T1 - Claim reserving prediction with Bornhuetter-Ferguson method
AU - Saputra, I. G.C.D.
AU - Nurrohmah, S.
AU - Sari, S. F.
N1 - Publisher Copyright:
© 2021 Journal of Physics: Conference Series.
Copyright:
Copyright 2021 Elsevier B.V., All rights reserved.
PY - 2021/1/12
Y1 - 2021/1/12
N2 - In the long-tail business insurance class, claim settlement takes at least one year, since the claim was filed. This is because insurance companies must investigate in advance of the incident. The problem in the long-tail business can be attributed to the large or unresolved number of claims, called outstanding claims. The prediction of outstanding claims has an important role considering insurance companies are required to allocate sufficient reserves for future payment of claims. Generally, the problem of prediction of outstanding claims utilizes run-off triangle. Run-off triangle is an instrument, which is used to analyze the relationship between claims payments that have been made over the past few years. One of the prediction methods that commonly used is the Bornhuetter-Ferguson method. This method will be applied to the paid loss and ALAE Commercial Auto/Truck Liability/Medical insurance data, which is obtained from Highline Annual Statement Schedule P Data from all industry in the United States for the period 1999-2008, where the claim payment is stated in USD (000's).
AB - In the long-tail business insurance class, claim settlement takes at least one year, since the claim was filed. This is because insurance companies must investigate in advance of the incident. The problem in the long-tail business can be attributed to the large or unresolved number of claims, called outstanding claims. The prediction of outstanding claims has an important role considering insurance companies are required to allocate sufficient reserves for future payment of claims. Generally, the problem of prediction of outstanding claims utilizes run-off triangle. Run-off triangle is an instrument, which is used to analyze the relationship between claims payments that have been made over the past few years. One of the prediction methods that commonly used is the Bornhuetter-Ferguson method. This method will be applied to the paid loss and ALAE Commercial Auto/Truck Liability/Medical insurance data, which is obtained from Highline Annual Statement Schedule P Data from all industry in the United States for the period 1999-2008, where the claim payment is stated in USD (000's).
KW - Bornhuetter -Ferguson method
KW - Long-tail business insurance
KW - Outstanding claims
KW - Run-off triangle
UR - http://www.scopus.com/inward/record.url?scp=85100787039&partnerID=8YFLogxK
U2 - 10.1088/1742-6596/1725/1/012102
DO - 10.1088/1742-6596/1725/1/012102
M3 - Conference article
AN - SCOPUS:85100787039
SN - 1742-6588
VL - 1725
JO - Journal of Physics: Conference Series
JF - Journal of Physics: Conference Series
IS - 1
M1 - 012102
T2 - 2nd Basic and Applied Sciences Interdisciplinary Conference 2018, BASIC 2018
Y2 - 3 August 2018 through 4 August 2018
ER -