BASIC CHAIN LADDER METHOD VERSUS INFLATION ADJUSTED CHAIN LADDER METHOD

Abstract

The damage consists of material injury to the insured because of occurrence of the insured risk. This may be total or partial depending on the degree to which the affected property was insured. Technical provisions are shown separately in the accounts of the insurer, and their value should allow him any time to honor obligations related to insurance contracts entered into and damage. Thus it is essential to have a reliable estimate of the reserves required to be used to cover claims in order to ensure stability of the insurance company and of the profit or loss thereof.

Keywords

• claims, chain-ladder method, damages, premium rates