Mack (2000)

Question 1

Advantage of Chain Ladder method over BF

Answer 1

Using CL, different actuaries obtain similar results

Question 2

Advantage of the Benktander Method compared to BF and CL

Answer 2

1. Lower mean squared error (MSE)
2. Better approximation of the exact Bayesian procedure
3. Superior to CL since it gives more weight to the a priori expectation of ultimate losses
4. Superior to BF since it gives more weight to actual loss experience