Benktander

Question 1

Advantages of Benktender

Answer 1

• Almost always have a smaller MSE than the CL or BF method
• Improvement over the CL - incorporates prior expectation of losses rather than fully relying on paid/reported losses
• Improvements over the BF - RESERVES incorporate actual losses rather than fully relying on expected losses

Question 2

Benktender Ult

3 Formulas

Answer 2

1. CL Ult * % reported + BF Ult * % unreported
2. Reported Loss + % unreported * BF Ult
3. CL Ult * (1 - % unreported^2) + ELR Ult * % unreported^2