Question
One of the calculations used is a loss development factor. For some lines of insurance, it can take years for a claim to be fully
One of the calculations used is a loss development factor. For some lines of insurance, it can take years for a claim to be fully paid out as there is a delay between a claim being reported and the full amount being paid and if the claim ends up in court it may take years to settle. This growth in the amount of losses paid is known as loss development. Given the following table what is the loss development factor representing the growth in paid losses from 2017 to 2019?
Year accident occurred
Paid Losses 2017
Paid Losses 2018
Paid Losses 2019 201750,00075,00090,000
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