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Claim reserving primarily relies on macro-level models, with the Chain-Ladder method being the most widely adopted. These methods were heuristically developed without minimal statistical foundations, relying on oversimplified data…

Econometrics · Economics 2024-06-13 Sebastian Calcetero-Vanegas , Andrei L. Badescu , X. Sheldon Lin

Loss reserving generally focuses on identifying a single model that can generate superior predictive performance. However, different loss reserving models specialise in capturing different aspects of loss data. This is recognised in…

Methodology · Statistics 2024-06-04 Benjamin Avanzi , Yanfeng Li , Bernard Wong , Alan Xian

The occurrence of a claim often impacts not one but multiple insurance coverages provided in the contract. To account for this multivariate feature, we propose a new individual claims reserving model built around the activation of the…

Mathematical Finance · Quantitative Finance 2023-08-16 Marie Michaelides , Mathieu Pigeon , Hélène Cossette

Traditional non-life reserving models largely neglect the vast amount of information collected over the lifetime of a claim. This information includes covariates describing the policy, claim cause as well as the detailed history collected…

Risk Management · Quantitative Finance 2021-11-22 Jonas Crevecoeur , Jens Robben , Katrien Antonio

A common approach to the claims reserving problem is based on generalized linear models (GLM). Within this framework, the claims in different origin and development years are assumed to be independent variables. If this assumption is…

Applications · Statistics 2013-06-18 Šárka Hudecová , Michal Pešta

Within the Solvency II framework the insurance industry requires a realistic modelling of the risk processes relevant for its business. Every insurance company should be capable of running a holistic risk management process to meet this…

Risk Management · Quantitative Finance 2010-09-23 Magda Schiegl

Traditionally, actuaries have used run-off triangles to estimate reserve ("macro" models, on agregated data). But it is possible to model payments related to individual claims. If those models provide similar estimations, we investigate…

Applications · Statistics 2016-03-01 Arthur Charpentier , Mathieu Pigeon

The chain-ladder (CL) method is the most widely used claims reserving technique in non-life insurance. This manuscript introduces a novel approach to computing the CL reserves based on a fundamental restructuring of the data utilization for…

Applications · Statistics 2026-02-19 Ronald Richman , Mario V. Wüthrich

Currently, legal requirements demand that insurance companies increase their emphasis on monitoring the risks linked to the underwriting and asset management activities. Regarding underwriting risks, the main uncertainties that insurers…

Risk Management · Quantitative Finance 2020-08-19 Eduardo Ramos-Pérez , Pablo J. Alonso-González , José Javier Núñez-Velázquez

The existence of large and extreme claims of a non-life insurance portfolio influences the ability of (re)insurers to estimate the reserve. The excess over-threshold method provides a way to capture and model the typical behaviour of…

Applications · Statistics 2019-11-07 Yinzhi Wang , Ingrid Hobæk Haff , Arne Huseby

The paper proposes an original methodology for constructing quantitative statistical models based on multidimensional distribution functions constructed on the basis of the insurance companies' data on inshurance policies (including…

Risk Management · Quantitative Finance 2019-08-15 Valery Baskakov , Nikolay Sheparnev , Evgeny Yanenko

An intensive research sprang up for stochastic methods in insurance during the past years. To meet all future claims rising from policies, it is requisite to quantify the outstanding loss liabilities. Loss reserving methods based on…

Econometrics · Economics 2018-01-08 Matúš Maciak , Ostap Okhrin , Michal Pešta

One of the main goals in non-life insurance is to estimate the claims reserve distribution. A generalized time series model, that allows for modeling the conditional mean and variance of the claim amounts, is proposed for the claims…

Applications · Statistics 2013-06-20 Michal Pešta , Ostap Okhrin

Due to the presence of reporting and settlement delay, claim data sets collected by non-life insurance companies are typically incomplete, facing right censored claim count and claim severity observations. Current practice in non-life…

Risk Management · Quantitative Finance 2023-02-10 Jonas Crevecoeur , Katrien Antonio , Stijn Desmedt , Alexandre Masquelein

This paper introduces a unified micro-level stochastic framework for the joint modeling of loss reserves (RBNS), incurred but not reported (IBNR) reserves, and unearned premium risk under dependence, inflation, and discounting. The proposed…

Applications · Statistics 2025-12-15 Emmanuel Hamel , Anas Abdallah , Ghislain Léveillé

The appropriate estimation of incurred but not reported (IBNR) reserves is traditionally one of the most important task of actuaries working in casualty and property insurance. As certain claims are reported many years after their…

Methodology · Statistics 2015-01-27 Laszlo Martinek , Miklos Arato , Miklos Malyusz

Modeling insurance claim amounts and classifying claims into different risk levels are critical yet challenging tasks. Traditional predictive models for insurance claims often overlook the valuable information embedded in claim…

Applications · Statistics 2024-10-08 Yanxi Hou , Xiaolan Xia , Guangyuan Gao

In this paper, we address the identification and estimation of insurance models where insurees have private information about their risk and risk aversion. The model includes random damages and allows for several claims, while insurers…

General Economics · Economics 2024-10-14 Gaurab Aryal , Isabelle Perrigne , Quang Vuong , Haiqing Xu

We consider an empirical likelihood framework for inference for a statistical model based on an informative sampling design and population-level information. The population-level information is summarized in the form of estimating equations…

Methodology · Statistics 2022-09-07 Sanjay Chaudhuri , Mark S. Handcock , Michael S. Rendall

For a typical insurance portfolio, the claims process for a short period, typically one year, is characterized by observing frequency of claims together with the associated claims severities. The collective risk model describes this…

Applications · Statistics 2020-06-12 Rosy Oh , Himchan Jeong , Jae Youn Ahn , Emiliano A. Valdez
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