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#1
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We’re having trouble with our IBNER being larger than our history of settled claims; ie since some claims are open for a very long time they tend to get overrepresented among the open, reported claims. Furthermore, these long claims have proven themselves to be much more expensive than the settled claims.
Is there anyone who knows of a method which handles this problem? When I’m talking long tails I mean up to 30 years and even longer… As it is now we are using the chain ladder method, but we have realised that we probably are underestimating of our claims reserve. Someone who have looked into Schniepers method (1991)? Tried this, but came to strange results, maybe due to repayments (negative values). I would be delighted for any kind of input! Being overseas, I might be a bit slow in replying any comments (sleeping while the rest of you are working |
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#2
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Are you talking about Disability Income? Or maybe Long Term Care? If you have "open claims", then you are not really talking about IBNR, which stand for "Incurred But Not Reported," b/c an open claim is by definition already reported.
If you could clarify what you are asking about then it would be easier to discuss appropriate reserve methods.
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#3
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IBNER is waht was mentioned, and is part of IBNR.
IBNR has two main portions: pure incurred but not yet reported (ie, claim not yet in) and then IBNER incurred but not enough reported (claim in but case reserve from claims is signficantly inadequate). is there any movement to get case reserve adequacy up to where it needs to be? |
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#4
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Your name reminded me of Dutch Dooley
![]() 30 year tail holy smokes! I can't offer any advice, but I am interested in what kind of product this is. Sounds like LTC to me. |
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#5
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[quote=ajstudies;3810676]Are you talking about Disability Income? Or maybe Long Term Care? If you have "open claims", then you are not really talking about IBNR, which stand for "Incurred But Not Reported," b/c an open claim is by definition already reported.
As Tommie says I am reffering to IBNER, and not IBNR. It is not an american insurance, whereas the it is not so simple to just translate the name of the insurance, but I'll try a brief description of the product: If a person is injured at work, or is disabled through a disease related to work (e.g. burnout, cancer from being exposed to harmful substances, ...), the person can get paid for costs as well as lost income and pensions (and more). It is a quite complex product, and many cases are difficult to close. Hope this clarifies things a bit! |
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#6
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How about the Schnieper method of separating true IBNR and IBNER claims? Anyone who has any experience of this method?
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#7
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Quote:
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#8
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Ah, to put it in terms familiar to North American actuaries - more like workers compensation, with an element of structured settlements. I have nothing to add to the discussion, but it was interesting to understand the nature of this very long-tail coverage.
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Carol Marler, FSA, MAAA, A Dedicated Actuary Just My Opinion (Although this statement is my opinion, and I am an actuary, it's still not a statement of actuarial opinion, and you really shouldn't rely on it.) Updated quotes Jan. 25: Spoiler: |
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#9
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yeah sounds like workers compensation. post this question in the Property - Casualty forum
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#10
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Oh. I guess I should do that then. Thanks a lot for telling me!
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