Definitions for "Loss development"
Keywords:  actuarial, ibnr, unl, ultimate, cur
See Development.
An actuarial method used to predict ultimate net losses (UNL) and IBNR. The growth of paid losses and case reserves is observed at regular intervals to arrive at age-to-age development percentages. Also, known as "triangulation" for the characteristic shape of the tabular data employed.
An actuarial method to detect and correct for consistent errors in estimating the amount of future loss payments or the procedure for adjusting incurred losses to reflect their future development and ultimate value. Loss development factors are developed actuarially and applied to cur-rent losses in order to predict what the ultimate cost of losses will be when the claims are closed.
The difference between the estimated amount of loss(es) as initially reported to the REINSURER and the amount of an evaluation of the same loss(es) at a later date or the amount paid in final settlement(s).
A comparison in the amount of and the development of the amount of losses that have occurred from a given point in time to a point at a later date.
The difference between an estimated amount of losses and its actual amount as evaluated.