Insurance Glossary
Actuarial & Reporting Frameworks
The methods and models behind reserving and IBNR estimation.
The methods, explained
Reserving relies on a handful of well-established actuarial methods. Knowing which one applies, and why, matters as much as the calculation itself.
Chain-Ladder Method
Projects future claims development from historical loss development patterns.
Bornhuetter-Ferguson Method
Blends historical development patterns with an independent estimate of expected losses.
Expected Loss Ratio Method
Estimates ultimate losses from expected loss ratios, most useful with limited claims history.
See these methods in Insutec
Get a walkthrough of how Insutec applies these methods to your claims data.