Claims Reserving Flashcards
1
Q
What is the accrual concept in ACM counting?
A
Transactions are recognized when they occur
2
Q
What is the Bornhuetter-Ferguson method of claims reserving?
A
A combination of loss ratio method and either a paid loss or incurred loss development
3
Q
Who decides the amount to set aside for claims?
A
CFO, supported by actuary
4
Q
What are discounted claims?
A
Claims where the amount set aside is reduced by the investment income expected to be earned
5
Q
What is claims run off?
A
It is the opening provision for claims minus the actual cost of claims
