{"id":496,"date":"2020-06-26T09:38:20","date_gmt":"2020-06-26T04:08:20","guid":{"rendered":"https:\/\/theactuarialclub.com\/learn\/?p=496"},"modified":"2025-04-30T11:57:01","modified_gmt":"2025-04-30T06:27:01","slug":"short-and-long-tailed","status":"publish","type":"post","link":"https:\/\/theactuarialclub.com\/learn\/terms\/short-and-long-tailed\/","title":{"rendered":"Short and Long Tailed"},"content":{"rendered":"\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-28f84493 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:37.27%\">\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-luminous-vivid-amber-background-color has-background wp-element-button\" href=\"https:\/\/theactuarialclub.com\/learn\/actuarial-gi-reserving\/other-reserves\/\" style=\"border-radius:6px\">&lt; Previous<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-column ghostkit-d-sm-none ghostkit-d-md-none is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:57.1%\"><\/div>\n\n\n\n<div class=\"wp-block-column tac-button-next is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:37.27%\">\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-luminous-vivid-amber-background-color has-background wp-element-button\" href=\"https:\/\/theactuarialclub.com\/learn\/terms\/earned-premium\/\" style=\"border-radius:6px\">Next &gt;<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<p class=\"has-very-dark-gray-color has-text-color has-background\" style=\"background-color:#d4edda\"><em>Somehow, Short-tailed and long-tailed suggest only if the claims are reported and settled quickly<\/em> <em>or are delayed. But these are used everywhere in General Insurance. <\/em><\/p>\n\n\n\n<p>Short and Long tailed is an important concept there is not an exercise in which we are not going to use it, consider pricing, reserving or even Asset Liability Management.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Short Tailed<\/h2>\n\n\n\n<p>Short tailed means that the claims are generally reported quickly and settled quickly by the insurer.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Long Tailed<\/h2>\n\n\n\n<p>Long tailed means that there is a sizeable proportion of total claim payments that takes a long time to be reported and\/or a long time for the insurer to settle.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Somehow, Short-tailed and long-tailed suggest only if the claims are reported and settled quickly or are delayed. But these are used everywhere in General Insurance. Short and Long tailed is an important concept there is not an exercise in which we are not going to use it, consider pricing, reserving or even Asset Liability Management. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[157],"tags":[],"class_list":["post-496","post","type-post","status-publish","format-standard","hentry","category-terms"],"acf":[],"_links":{"self":[{"href":"https:\/\/theactuarialclub.com\/learn\/wp-json\/wp\/v2\/posts\/496","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/theactuarialclub.com\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/theactuarialclub.com\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/theactuarialclub.com\/learn\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/theactuarialclub.com\/learn\/wp-json\/wp\/v2\/comments?post=496"}],"version-history":[{"count":7,"href":"https:\/\/theactuarialclub.com\/learn\/wp-json\/wp\/v2\/posts\/496\/revisions"}],"predecessor-version":[{"id":903,"href":"https:\/\/theactuarialclub.com\/learn\/wp-json\/wp\/v2\/posts\/496\/revisions\/903"}],"wp:attachment":[{"href":"https:\/\/theactuarialclub.com\/learn\/wp-json\/wp\/v2\/media?parent=496"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/theactuarialclub.com\/learn\/wp-json\/wp\/v2\/categories?post=496"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/theactuarialclub.com\/learn\/wp-json\/wp\/v2\/tags?post=496"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}