Conjoint Prediction of Paid and Incurred Losses

@inproceedings{Halliwell1999ConjointPO,
  title={Conjoint Prediction of Paid and Incurred Losses},
  author={Leigh J. Halliwell},
  year={1999}
}
  • Leigh J. Halliwell
  • Published 1999
Actuaries use paid and incurred methods to predict losses. Then one method is selected, and usually the information contained in the other(s) is jettisoned. Sometimes methods are weighted together, but without statistical justification. And even when an incurred method is deemed sufficient, present valuing will require predictions of loss payments. This paper will present a statistical model whereby paid and incurred losses are predicted together, or interdependently. As a result, the… CONTINUE READING