at 2:37 mentioned for gray traingle on the left, can you please elaborate why we have "no Exposure" there. I'm not able to visualise it. an example might be helpful, thanks !
Hello. The gray region represents the period where the reporting date is before the occurrence date. It is not possible to have a claim with those characteristics. For example, suppose a claim has a date of loss (i.e., the accident occurred) on 3/1/2024 and was reported on 2/1/2024. Obviously, a claim cannot be reported before it occurred. Hope this helps!
Hello. Many businesses that purchase claims-made insurance are required to carry a loss reserve liability to recognize the uninsured tail exposure. These businesses typically hire third-party actuaries to estimate their loss reserve need. If you would like more information, feel free to contact me at don.grimm@archeractuarial.com. Thanks!
@@ArcherActuarialConsulting So if I have understood correctly IBNR is basically loss reserve that covers this uninsured tail exposure Maybe I am wrong but I Need help with basics
@@quratulain5651 IBNR, or "incurred but not reported" can be used in different ways depending on the context. For claims-made coverage, IBNR is sometimes called IBNYR ("incurred but not yet reported"), or "late reported claim reserve". You are correct that an estimate of IBNR is necessary to recognize the uninsured tail liability. Another way to say this is that claims-made coverage does not cover late reported claims (claims reported after the policy effective date); therefore, an additional reserve (i.e., IBNR) is necessary to recognize expected future payments related to late-reported claims.
at 2:37 mentioned for gray traingle on the left, can you please elaborate why we have "no Exposure" there. I'm not able to visualise it. an example might be helpful, thanks !
Hello. The gray region represents the period where the reporting date is before the occurrence date. It is not possible to have a claim with those characteristics.
For example, suppose a claim has a date of loss (i.e., the accident occurred) on 3/1/2024 and was reported on 2/1/2024. Obviously, a claim cannot be reported before it occurred. Hope this helps!
How can we recognize/establish
Loss reserve or purchasing tail from insurance market
Hello. Many businesses that purchase claims-made insurance are required to carry a loss reserve liability to recognize the uninsured tail exposure. These businesses typically hire third-party actuaries to estimate their loss reserve need. If you would like more information, feel free to contact me at don.grimm@archeractuarial.com. Thanks!
@@ArcherActuarialConsulting
So if I have understood correctly
IBNR is basically loss reserve that covers this uninsured tail exposure
Maybe I am wrong but
I Need help with basics
@@quratulain5651 IBNR, or "incurred but not reported" can be used in different ways depending on the context.
For claims-made coverage, IBNR is sometimes called IBNYR ("incurred but not yet reported"), or "late reported claim reserve". You are correct that an estimate of IBNR is necessary to recognize the uninsured tail liability. Another way to say this is that claims-made coverage does not cover late reported claims (claims reported after the policy effective date); therefore, an additional reserve (i.e., IBNR) is necessary to recognize expected future payments related to late-reported claims.
@@ArcherActuarialConsulting thank you
And
I must say
I am learning a lot from your videos
Hopefully I can see more