Bornhuetter-Ferguson reported claim count method. This method projects ultimate claim counts in two parts, expected open claims that will close with indemnity payment plus actual reported claims through year-end. Open claims that will close with payment are estimated to be the expected percentage open times initial expected ultimate claim counts. The expected percentage open is [...]
Bornhuetter-Ferguson closed claim count method. This method projects ultimate claim counts in two parts, expected open claims that will close with indemnity payment plus actual closed claims . Open claims that will close with indemnity payment are estimated to be the expected percentage open times initial expected ultimate claim count. The expected percentage unpaid is [...]
Reported claim count development method. Reported claim counts are projected to ultimate values based on historical development patterns. Historical development factors are reviewed and forecasted factors are selected. The selected factors are used to project ultimate claim counts. This method is most reliable when development patterns are stable over time, which is generally true for [...]