Can use data in table format (AY, From and To Age, Incremental Paid, Exposure)
Can we Use the CoV from the model even if select a different reserve?
No: since you don’t trust the reserve estimate
Yes: since the s.d. is a selection and the CoV from this model is a reasonable basis
Curve was selected because:
The move smoothly from 0 to 1
Closely match empirical data
1st and 2nd derivative are calculable
Others can be used as well
MLE is useful for estimating both the expected emergence pattern and the variance
ODP is convenient link to LDF and Cape Cod estimates
6.7 Comments and Conclusion
Can use data in table format (AY, From and To Age, Incremental Paid, Exposure)
Can we Use the CoV from the model even if select a different reserve?
No: since you don’t trust the reserve estimate
Yes: since the s.d. is a selection and the CoV from this model is a reasonable basis
Curve was selected because:
The move smoothly from 0 to 1
Closely match empirical data
1st and 2nd derivative are calculable
Others can be used as well
MLE is useful for estimating both the expected emergence pattern and the variance
ODP is convenient link to LDF and Cape Cod estimates