Loss development factors or LDFs are used in insurance pricing and reserving to adjust claims to their projected ultimate level i.e to Ultimate Claims. Insurance claims, especially in long-tailed lines such as liability insurance …
Bornhuetter Ferguson Method (BF Method): A Practical Example in Loss Reserving
When it comes to estimating insurance losses—particularly those not yet reported—actuaries often turn to structured techniques to ensure accuracy and credibility. While the chain ladder method is widely known, the …