{"id":537,"date":"2020-06-27T00:55:06","date_gmt":"2020-06-26T19:25:06","guid":{"rendered":"https:\/\/theactuarialclub.com\/learn\/?p=537"},"modified":"2020-06-29T22:28:17","modified_gmt":"2020-06-29T16:58:17","slug":"methodology-for-gi-reserving","status":"publish","type":"post","link":"https:\/\/theactuarialclub.com\/learn\/actuarial-gi-reserving\/methodology-for-gi-reserving\/","title":{"rendered":"Methodology for GI Reserving"},"content":{"rendered":"\n<hr class=\"wp-block-separator\"\/>\n\n\n\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:25%\">\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\" href=\"https:\/\/theactuarialclub.com\/learn\/terms\/loss-development-factors-ldfs\/\">&lt; Previous<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-column ghostkit-d-md-none ghostkit-d-sm-none is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:44.8%\"><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:25%\">\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\" href=\"https:\/\/theactuarialclub.com\/learn\/actuarial-gi-reserving\/selecting-loss-development-factors\/\">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>The methodology on how to calculate IBNR doesn&#8217;t only rely on the Method selected but how the selections of methods take place. You need to understand a few concepts before dwelling into reserving Methods like Chain Ladder, BF Method, and others<\/em>.<\/p>\n\n\n\n<p>In this Section, we will explain you the <em>process of calculation<\/em> of IBNR Reserves in General Insurance rather than numerical calculation. That will follow up soon after we understand the process completely.<\/p>\n\n\n\n<p>Applying just the methods wouldn&#8217;t give you the IBNR or the outstanding reserves. It is important to understand the complete process.<\/p>\n\n\n\n<p>Below are the steps which are generally been followed for calculation of IBNR reserves. These are explained in simplest terms and keeping in mind your level, the complications have been removed which may include providing a tail factor, age to age factors, weighted average development, interpolating LDFs and many other real life issues. <\/p>\n\n\n\n<p>But still, these exercises will give you the knowledge for the questions asked in an interview up until 0 to 5 years. <em>Yes! you got it right<\/em>. <\/p>\n\n\n\n<blockquote class=\"wp-block-quote has-text-align-center is-style-large is-layout-flow wp-block-quote-is-layout-flow\"><p>The processes are the same every time, methods are tweaked according to situation. Therefore, it becomes important to understand the process.<\/p><cite>By an experienced Reserving\/ Reinsurance Reserving GI professional<\/cite><\/blockquote>\n\n\n\n<p>Many methods assume that the future pattern will follow past patterns. So, we will try to find the factor responsible for past incrementation. However, many times there are cases when we particularly do not consider a development year or an accident year due to adversities or change in processes. Simply, wherever the patter is hindered we do not consider that part.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Learning Methodology for IBNR Calculation<\/h3>\n\n\n\n<div class=\"schema-how-to wp-block-yoast-how-to-block\"><p class=\"schema-how-to-total-time\"><span class=\"schema-how-to-duration-time-text\">Time needed:&nbsp;<\/span>15 minutes<\/p><p class=\"schema-how-to-description\">Applying any method like CLM, BF, or Frequency Severity requires you to go through certain steps and all the steps have their importance. Most of these terms must easily be understood by you as you have already read them in earlier chapters.<\/p> <ol class=\"schema-how-to-steps\"><li class=\"schema-how-to-step\" id=\"how-to-step-1593106110081\"><strong class=\"schema-how-to-step-name\">Create Run off triangles<\/strong> <p class=\"schema-how-to-step-text\">You have already studied that <em>Run off triangles<\/em>\u00a0is a method used to model claims experience. They\u2019re specifically used to estimate the future claims that will be reported based on those already reported. When a claim event occurs there will be some time before it is reported or notified to the insurer \u2013 this is known as a claim delay.<br\/><br\/><a href=\"https:\/\/theactuarialclub.com\/learn\/actuarial-gi-reserving\/run-off-triangles-in-gi\/\"><\/a><a href=\"https:\/\/theactuarialclub.com\/learn\/actuarial-gi-reserving\/run-off-triangles-in-gi\/\">RUN OFF TRIANGLES IN GI<\/a><br\/><\/p> <\/li><li class=\"schema-how-to-step\" id=\"how-to-step-1593106210178\"><strong class=\"schema-how-to-step-name\">Calculate Development Factors<\/strong> <p class=\"schema-how-to-step-text\"><br\/>It is important to understand how development factors work. <br\/><br\/><a href=\"https:\/\/theactuarialclub.com\/learn\/terms\/development-factors\/\"><\/a><a href=\"https:\/\/theactuarialclub.com\/learn\/terms\/development-factors\/\">DEVELOPMENT FACTORS<\/a><br\/><br\/><\/p> <\/li><li class=\"schema-how-to-step\" id=\"how-to-step-1593106334862\"><strong class=\"schema-how-to-step-name\">Select Development Factors<\/strong> <p class=\"schema-how-to-step-text\">It is also possible that altogether different patterns are selected where they are not applicable. Like a new organization would go for benchmarked factors or may not use any development method at all or a new location for a multinational Insurance company, so they can use development factors of another region with a little tweak or delayed.<br\/><br\/>This may be new for you and is coming in the next chapters of this section.<br\/><br\/><\/p> <\/li><li class=\"schema-how-to-step\" id=\"how-to-step-1593106360548\"><strong class=\"schema-how-to-step-name\">Calculate Cumulative Development Factor<\/strong> <p class=\"schema-how-to-step-text\"><em>Cumulative claim development factors (a.k.a. age-to-ultimate factors and claim development factors to ultimate) are calculated by successive multiplications beginning with the tail factor and the oldest age-to-age factor and projects the total growth over the remaining valuations.<\/em><br\/><br\/>This may be new for you and is coming in the next chapters of this section along with exercises<br\/><br\/><\/p> <\/li><li class=\"schema-how-to-step\" id=\"how-to-step-1593106378652\"><strong class=\"schema-how-to-step-name\">Calculate Ultimate Claims<\/strong> <p class=\"schema-how-to-step-text\"><br\/>This is where the methods like the Chain Ladder and others are used. The exercises for all the methods would help you to understand the basic and intermediary concepts which are very useful for anyone who is working or planning to work in the Actuarial GI sector.<br\/><br\/>This may be new for you and is coming in the next chapters of this section<br\/><br\/><\/p> <\/li><li class=\"schema-how-to-step\" id=\"how-to-step-1593106409967\"><strong class=\"schema-how-to-step-name\">Calculate IBNR<br\/><\/strong> <p class=\"schema-how-to-step-text\">And finally calculating IBNR using different methods.<br\/><br\/><\/p> <\/li><\/ol><\/div>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Questions Related to Processes in IBNR Calculation<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\"><strong class=\"schema-faq-question\"><strong>A<\/strong>re these processes are followed every time when we calculate reserves?<br\/><\/strong> <p class=\"schema-faq-answer\"><strong><em>Y<\/em>es. The process is every time the same. <\/strong>We ask for LDFs and ELRs. We apply a method to get Ultimates. We reduce the Incurred and we get our reserves. <br\/><\/p> <\/div> <div class=\"schema-faq-section\"><strong class=\"schema-faq-question\"><\/strong> <p class=\"schema-faq-answer\"><\/p> <\/div> <\/div>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\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:25%\">\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\" href=\"https:\/\/theactuarialclub.com\/learn\/terms\/loss-development-factors-ldfs\/\">&lt; Previous<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-column ghostkit-d-md-none ghostkit-d-sm-none is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:50%\"><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:25%\">\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\" href=\"https:\/\/theactuarialclub.com\/learn\/actuarial-gi-reserving\/selecting-loss-development-factors\/\">Next &gt;<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The methodology on how to calculate IBNR doesn&#8217;t only rely on the Method selected but how the selections of methods take place. You need to understand a few concepts before dwelling into reserving Methods like Chain Ladder, BF Method, and others. In this Section, we will explain you the process of calculation of IBNR Reserves [&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":[16],"tags":[],"class_list":["post-537","post","type-post","status-publish","format-standard","hentry","category-actuarial-gi-reserving"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Methodology for GI Reserving &#8226; TAC Actuarial Learning<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/theactuarialclub.com\/learn\/actuarial-gi-reserving\/methodology-for-gi-reserving\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Methodology for GI Reserving\" \/>\n<meta property=\"og:description\" content=\"The methodology on how to calculate IBNR doesn&#8217;t only rely on the Method selected but how the selections of methods take place. 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In this Section, we will explain you the process of calculation of IBNR Reserves [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/theactuarialclub.com\/learn\/actuarial-gi-reserving\/methodology-for-gi-reserving\/\" \/>\n<meta property=\"og:site_name\" content=\"TAC Actuarial Learning\" \/>\n<meta property=\"article:author\" content=\"http:\/\/www.facebook.com\/maygoyal\" \/>\n<meta property=\"article:published_time\" content=\"2020-06-26T19:25:06+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-06-29T16:58:17+00:00\" \/>\n<meta name=\"author\" content=\"Mayank Goyal FIA\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@may_mgtl\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mayank Goyal FIA\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/theactuarialclub.com\\\/learn\\\/actuarial-gi-reserving\\\/methodology-for-gi-reserving\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/theactuarialclub.com\\\/learn\\\/actuarial-gi-reserving\\\/methodology-for-gi-reserving\\\/\"},\"author\":{\"name\":\"Mayank Goyal FIA\",\"@id\":\"https:\\\/\\\/theactuarialclub.com\\\/learn\\\/#\\\/schema\\\/person\\\/b648b855bd3a04dca7fb005fb3d604f4\"},\"headline\":\"Methodology for GI Reserving\",\"datePublished\":\"2020-06-26T19:25:06+00:00\",\"dateModified\":\"2020-06-29T16:58:17+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/theactuarialclub.com\\\/learn\\\/actuarial-gi-reserving\\\/methodology-for-gi-reserving\\\/\"},\"wordCount\":668,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/theactuarialclub.com\\\/learn\\\/#organization\"},\"articleSection\":[\"Actuarial GI Reserving\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/theactuarialclub.com\\\/learn\\\/actuarial-gi-reserving\\\/methodology-for-gi-reserving\\\/#respond\"]}]},{\"@type\":[\"WebPage\",\"FAQPage\"],\"@id\":\"https:\\\/\\\/theactuarialclub.com\\\/learn\\\/actuarial-gi-reserving\\\/methodology-for-gi-reserving\\\/\",\"url\":\"https:\\\/\\\/theactuarialclub.com\\\/learn\\\/actuarial-gi-reserving\\\/methodology-for-gi-reserving\\\/\",\"name\":\"Methodology for GI Reserving &#8226; 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Actuarial Science, Blogger, Web Developing, Winphan India, App development, Social Media Managing, Event Managing &amp; bla bla bla.\",\"sameAs\":[\"http:\\\/\\\/www.insurology.in\",\"http:\\\/\\\/www.facebook.com\\\/maygoyal\",\"https:\\\/\\\/www.instagram.com\\\/maygoyal\\\/\",\"https:\\\/\\\/www.linkedin.com\\\/in\\\/mayank-goyal\\\/\",\"https:\\\/\\\/x.com\\\/may_mgtl\"],\"url\":\"https:\\\/\\\/theactuarialclub.com\\\/learn\\\/author\\\/mayankgoyal\\\/\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/theactuarialclub.com\\\/learn\\\/actuarial-gi-reserving\\\/methodology-for-gi-reserving\\\/#faq-question-1590913039950\",\"position\":1,\"url\":\"https:\\\/\\\/theactuarialclub.com\\\/learn\\\/actuarial-gi-reserving\\\/methodology-for-gi-reserving\\\/#faq-question-1590913039950\",\"name\":\"Are these processes are followed every time when we calculate reserves?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"<strong><em>Y<\\\/em>es. The process is every time the same. <\\\/strong>We ask for LDFs and ELRs. We apply a method to get Ultimates. We reduce the Incurred and we get our reserves. <br\\\/>\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"HowTo\",\"@id\":\"https:\\\/\\\/theactuarialclub.com\\\/learn\\\/actuarial-gi-reserving\\\/methodology-for-gi-reserving\\\/#howto-1\",\"name\":\"Methodology for GI Reserving\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/theactuarialclub.com\\\/learn\\\/actuarial-gi-reserving\\\/methodology-for-gi-reserving\\\/#article\"},\"description\":\"Applying any method like CLM, BF, or Frequency Severity requires you to go through certain steps and all the steps have their importance. Most of these terms must easily be understood by you as you have already read them in earlier chapters.\",\"totalTime\":\"P0DT0H15M\",\"step\":[{\"@type\":\"HowToStep\",\"url\":\"https:\\\/\\\/theactuarialclub.com\\\/learn\\\/actuarial-gi-reserving\\\/methodology-for-gi-reserving\\\/#how-to-step-1593106110081\",\"name\":\"Create Run off triangles\",\"itemListElement\":[{\"@type\":\"HowToDirection\",\"text\":\"You have already studied that Run off triangles\u00a0is a method used to model claims experience. They\u2019re specifically used to estimate the future claims that will be reported based on those already reported. When a claim event occurs there will be some time before it is reported or notified to the insurer \u2013 this is known as a claim delay.RUN OFF TRIANGLES IN GI\"}]},{\"@type\":\"HowToStep\",\"url\":\"https:\\\/\\\/theactuarialclub.com\\\/learn\\\/actuarial-gi-reserving\\\/methodology-for-gi-reserving\\\/#how-to-step-1593106210178\",\"name\":\"Calculate Development Factors\",\"itemListElement\":[{\"@type\":\"HowToDirection\",\"text\":\"It is important to understand how development factors work. DEVELOPMENT FACTORS\"}]},{\"@type\":\"HowToStep\",\"url\":\"https:\\\/\\\/theactuarialclub.com\\\/learn\\\/actuarial-gi-reserving\\\/methodology-for-gi-reserving\\\/#how-to-step-1593106334862\",\"name\":\"Select Development Factors\",\"itemListElement\":[{\"@type\":\"HowToDirection\",\"text\":\"It is also possible that altogether different patterns are selected where they are not applicable. Like a new organization would go for benchmarked factors or may not use any development method at all or a new location for a multinational Insurance company, so they can use development factors of another region with a little tweak or delayed.This may be new for you and is coming in the next chapters of this section.\"}]},{\"@type\":\"HowToStep\",\"url\":\"https:\\\/\\\/theactuarialclub.com\\\/learn\\\/actuarial-gi-reserving\\\/methodology-for-gi-reserving\\\/#how-to-step-1593106360548\",\"name\":\"Calculate Cumulative Development Factor\",\"itemListElement\":[{\"@type\":\"HowToDirection\",\"text\":\"Cumulative claim development factors (a.k.a. age-to-ultimate factors and claim development factors to ultimate) are calculated by successive multiplications beginning with the tail factor and the oldest age-to-age factor and projects the total growth over the remaining valuations.This may be new for you and is coming in the next chapters of this section along with exercises\"}]},{\"@type\":\"HowToStep\",\"url\":\"https:\\\/\\\/theactuarialclub.com\\\/learn\\\/actuarial-gi-reserving\\\/methodology-for-gi-reserving\\\/#how-to-step-1593106378652\",\"name\":\"Calculate Ultimate Claims\",\"itemListElement\":[{\"@type\":\"HowToDirection\",\"text\":\"This is where the methods like the Chain Ladder and others are used. The exercises for all the methods would help you to understand the basic and intermediary concepts which are very useful for anyone who is working or planning to work in the Actuarial GI sector.This may be new for you and is coming in the next chapters of this section\"}]},{\"@type\":\"HowToStep\",\"url\":\"https:\\\/\\\/theactuarialclub.com\\\/learn\\\/actuarial-gi-reserving\\\/methodology-for-gi-reserving\\\/#how-to-step-1593106409967\",\"name\":\"Calculate IBNR\",\"itemListElement\":[{\"@type\":\"HowToDirection\",\"text\":\"And finally calculating IBNR using different methods.\"}]}],\"inLanguage\":\"en-US\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Methodology for GI Reserving &#8226; TAC Actuarial Learning","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/theactuarialclub.com\/learn\/actuarial-gi-reserving\/methodology-for-gi-reserving\/","og_locale":"en_US","og_type":"article","og_title":"Methodology for GI Reserving","og_description":"The methodology on how to calculate IBNR doesn&#8217;t only rely on the Method selected but how the selections of methods take place. You need to understand a few concepts before dwelling into reserving Methods like Chain Ladder, BF Method, and others. 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Actuarial Science, Blogger, Web Developing, Winphan India, App development, Social Media Managing, Event Managing &amp; bla bla bla.","sameAs":["http:\/\/www.insurology.in","http:\/\/www.facebook.com\/maygoyal","https:\/\/www.instagram.com\/maygoyal\/","https:\/\/www.linkedin.com\/in\/mayank-goyal\/","https:\/\/x.com\/may_mgtl"],"url":"https:\/\/theactuarialclub.com\/learn\/author\/mayankgoyal\/"},{"@type":"Question","@id":"https:\/\/theactuarialclub.com\/learn\/actuarial-gi-reserving\/methodology-for-gi-reserving\/#faq-question-1590913039950","position":1,"url":"https:\/\/theactuarialclub.com\/learn\/actuarial-gi-reserving\/methodology-for-gi-reserving\/#faq-question-1590913039950","name":"Are these processes are followed every time when we calculate reserves?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"<strong><em>Y<\/em>es. The process is every time the same. <\/strong>We ask for LDFs and ELRs. We apply a method to get Ultimates. We reduce the Incurred and we get our reserves. <br\/>","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"HowTo","@id":"https:\/\/theactuarialclub.com\/learn\/actuarial-gi-reserving\/methodology-for-gi-reserving\/#howto-1","name":"Methodology for GI Reserving","mainEntityOfPage":{"@id":"https:\/\/theactuarialclub.com\/learn\/actuarial-gi-reserving\/methodology-for-gi-reserving\/#article"},"description":"Applying any method like CLM, BF, or Frequency Severity requires you to go through certain steps and all the steps have their importance. Most of these terms must easily be understood by you as you have already read them in earlier chapters.","totalTime":"P0DT0H15M","step":[{"@type":"HowToStep","url":"https:\/\/theactuarialclub.com\/learn\/actuarial-gi-reserving\/methodology-for-gi-reserving\/#how-to-step-1593106110081","name":"Create Run off triangles","itemListElement":[{"@type":"HowToDirection","text":"You have already studied that Run off triangles\u00a0is a method used to model claims experience. They\u2019re specifically used to estimate the future claims that will be reported based on those already reported. When a claim event occurs there will be some time before it is reported or notified to the insurer \u2013 this is known as a claim delay.RUN OFF TRIANGLES IN GI"}]},{"@type":"HowToStep","url":"https:\/\/theactuarialclub.com\/learn\/actuarial-gi-reserving\/methodology-for-gi-reserving\/#how-to-step-1593106210178","name":"Calculate Development Factors","itemListElement":[{"@type":"HowToDirection","text":"It is important to understand how development factors work. DEVELOPMENT FACTORS"}]},{"@type":"HowToStep","url":"https:\/\/theactuarialclub.com\/learn\/actuarial-gi-reserving\/methodology-for-gi-reserving\/#how-to-step-1593106334862","name":"Select Development Factors","itemListElement":[{"@type":"HowToDirection","text":"It is also possible that altogether different patterns are selected where they are not applicable. Like a new organization would go for benchmarked factors or may not use any development method at all or a new location for a multinational Insurance company, so they can use development factors of another region with a little tweak or delayed.This may be new for you and is coming in the next chapters of this section."}]},{"@type":"HowToStep","url":"https:\/\/theactuarialclub.com\/learn\/actuarial-gi-reserving\/methodology-for-gi-reserving\/#how-to-step-1593106360548","name":"Calculate Cumulative Development Factor","itemListElement":[{"@type":"HowToDirection","text":"Cumulative claim development factors (a.k.a. age-to-ultimate factors and claim development factors to ultimate) are calculated by successive multiplications beginning with the tail factor and the oldest age-to-age factor and projects the total growth over the remaining valuations.This may be new for you and is coming in the next chapters of this section along with exercises"}]},{"@type":"HowToStep","url":"https:\/\/theactuarialclub.com\/learn\/actuarial-gi-reserving\/methodology-for-gi-reserving\/#how-to-step-1593106378652","name":"Calculate Ultimate Claims","itemListElement":[{"@type":"HowToDirection","text":"This is where the methods like the Chain Ladder and others are used. The exercises for all the methods would help you to understand the basic and intermediary concepts which are very useful for anyone who is working or planning to work in the Actuarial GI sector.This may be new for you and is coming in the next chapters of this section"}]},{"@type":"HowToStep","url":"https:\/\/theactuarialclub.com\/learn\/actuarial-gi-reserving\/methodology-for-gi-reserving\/#how-to-step-1593106409967","name":"Calculate IBNR","itemListElement":[{"@type":"HowToDirection","text":"And finally calculating IBNR using different methods."}]}],"inLanguage":"en-US"}]}},"acf":[],"_links":{"self":[{"href":"https:\/\/theactuarialclub.com\/learn\/wp-json\/wp\/v2\/posts\/537","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=537"}],"version-history":[{"count":10,"href":"https:\/\/theactuarialclub.com\/learn\/wp-json\/wp\/v2\/posts\/537\/revisions"}],"predecessor-version":[{"id":638,"href":"https:\/\/theactuarialclub.com\/learn\/wp-json\/wp\/v2\/posts\/537\/revisions\/638"}],"wp:attachment":[{"href":"https:\/\/theactuarialclub.com\/learn\/wp-json\/wp\/v2\/media?parent=537"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/theactuarialclub.com\/learn\/wp-json\/wp\/v2\/categories?post=537"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/theactuarialclub.com\/learn\/wp-json\/wp\/v2\/tags?post=537"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}