ADVANTAGES AND DISADVANTAGES OF LOSS RESERVING METHODS IN NON-LIFE INSURANCE
University of Belgrade, Serbia
We analyse characteristics of the three most commonly used methods for estimating loss reserves in non life insurance: the chain ladder method, the loss ratio method, and the Bornhuetter-Ferguson method. Our aim is to give a comparative anal- ysis of the results obtained from applying these methods to a practical case, and to put emphasis on their advantages and disadvantages.
Loss Reserves, Chain Ladder Method, Loss Ratio Method, Bornhuetter- Ferguson Method.