A Comparative Study of Loss Reserving Methods -Automobile Damage Insurance as an Example

• Main Authors: Shu-ping Wu, 吳書萍
• Other Authors: Ming-chun Lin
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/99764998137918388595

碩士 === 國立高雄第一科技大學 === 風險管理與保險所 === 93 === Loss reserve is one of the most important liabilities for property-liability insurance companies. It not only affects their operation, but also individual client’s benefit. However, insurance laws haven’t set a unify standard about the loss reserving methods. A variety of mathematical methods for estimation of total loss amounts have been developed. Finding the best method to calculate loss reserve is an important work for property-liability insurance companies. This study will focus on automobile damage insurance. Using historical empirical claim data and computing loss development factor by six methods to compare loss reserve estimation methods. The results indicate the best method is the Stanard-Buhlmann Method（Loss development factor by annuity depreciation method）,and the Chain Ladder Method is not as good as expected. All of above are focus on automobile damage insurance, and the best of reserving method might yield different outcome in different lines of property-liability insurance.