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Dynamic and granular loss reserving with copulae

Matúš Maciak, Ostap Okhrin, Michal Pešta

arXiv 5 Jan 2018 · Econometrics

arXiv:1801.01792 · PDF · DOI · OpenAlex · Extracted main text

Abstract

An intensive research sprang up for stochastic methods in insurance during the past years. To meet all future claims rising from policies, it is requisite to quantify the outstanding loss liabilities. Loss reserving methods based on aggregated data from run-off triangles are predominantly used to calculate the claims reserves. Conventional reserving techniques have some disadvantages: loss of information from the policy and the claim's development due to the aggregation, zero or negative cells in the triangle; usually small number of observations in the triangle; only few observations for recent accident years; and sensitivity to the most recent paid claims. To overcome these dilemmas, granular loss reserving methods for individual claim-by-claim data will be derived. Reserves' estimation is a crucial part of the risk valuation process, which is now a front burner in economics. Since there is a growing demand for prediction of total reserves for different types of claims or even multiple lines of business, a time-varying copula framework for granular reserving will be established.

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21
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distinct cited
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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
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8Haastrup, S. and Arjas, E (1996) Claims reserving in continuous time: A nonparametric bayesian approach0.40511100%
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10Jewell, W (1990) Predicting IBNYR events and delays, part II discrete time0.40511100%

Showing the top 10 of 21 scored citations.