How to Read a Loss Triangle - P&C Insurance Basics - Loss Reserving - Actuarial 101

[@jessicaboris3151]

Don Grimm is the man. Thanks Don!

[@ArcherActuarialConsulting]

Thank you for being awesome!

[@rkm9253]

Nice explanation, can you please upload few video on loss triangle

[@ArcherActuarialConsulting]

@rkm9253 Thank you. I'm open to suggestions on specific topics.

[@rkm9253]

@@ArcherActuarialConsulting How is loss triangle prepared ? What I'd loss development factor

[@ArcherActuarialConsulting]

@rkm9253 You may want to take a look at this "how to" video on loss triangles: kzbin.info/www/bejne/b2SnhJWOh8SfatUsi=6vAy7joTkxpISpti This video shows how to calculate loss development factors: kzbin.info/www/bejne/Z2jSlKR8l7iqZqssi=APheWGmKnXu11fNN

[@farmerj1]

I have never worked with WC but this triangle gives me head cramps. Is the significant variability in the paid loss development between accident years the result of a different distribution of loss severity by claim compared to a line such as Personal Auto? I am not an actuary so if I butchered my question, I apologize. Great way to spend a Friday evening, thanks for sharing!

[@ArcherActuarialConsulting]

Hello. Although this is just sample data that I made up, I would say it is fairly representative of a paid loss triangle for a smaller portfolio. The variability in losses is more a result of the relatively low exposure (and the fact that I made the numbers up!)

[@david8yu]

Thank you! Started studying for this portion and realized that I didn't conceptually understand the formulas because I didn't really understand what the numbers meant.

[@ArcherActuarialConsulting]

Glad the video helped, thank you!

[@paulembrack7776]

Great explanation 👌

[@ArcherActuarialConsulting]

Thank you!