Tid: 24 november 2003 kl 1615-1700
Plats : Seminarierummet 3733, Institutionen för matematik, KTH, Lindstedts väg 25, plan 7. Karta!
Föredragshållare: Lars Ek
Titel: Automatic reserving of small claims. --- A comparison of two different approaches of small claims reserving methodology. (Examensarbete)
Sammanfattning:
In the two main systems in Scandinavia (Norway and Sweden), automatic reserving is used for claims under a certain pre-settled claim cost. However, the details are different. In Norway, all claims have an assigned claim type with some or lots of supplementary information. Then a split is made of claim types and subtypes which overall gives about 150 different classes. In Sweden, a different way of dividing the claims into claim types is used. First, all claims are divided into product groups, sub products, and then into claim types which gives several thousand different classes.
The methods of doing the estimation of the reserve are also different in the two systems. The Swedish method is a yearly-based mean claim method, which calculates the reserve differently depending on if the claim has incurred during the present accounting year or during earlier accounting years. In the first case, the reserve is calculated collectively as the year's total claim cost minus made payments. For earlier years, the reserve is calculated individually for every claim as the mean claim for the actual year times a diminution function.
The Norwegian method ignores the split between accounting years and allots a pre-estimated mean reserve to every open claim. The size of the reserve depends on the age of the claim. The total reserve is then calculated as the sum of all the open claims' reserves.
The Norwegian method of reserving shows capable results when used on an independent set of data. Compared to the Swedish system, the Norwegian system, with less classes and a different reserving method, offers less maintenance work, clearer definitions of what the reserves shall cover, and possibilities to display results and methods graphically.