Chapter 8 Claims Development by Layer - R. Sahasrabuddhe

\(\star \star\) Setup base triangle

  1. Set AY CY trend triangle

  2. Unlimited mean loss table with (8.1) detrended

  3. LEV triangle @ \(L\) and LEV for the last row @ \(B\) with (8.2)

  4. Use (8.3) to get base layer

\(\star \star\) Convert the base LDFs to any layer

  • Convert base layer LDFs (8.4)

  • Convert to LDFs for XS Layers: (8.5)

Practical adjustments

  • Formula when we don’t have severity distribution for every age (8.6) and how to estimate (8.7)

Know the assumptions used: