Loss Reserving | Intro to Chain-Ladder Method
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- čas přidán 12. 09. 2024
- Here are some artificially created reported loss values used to illustrate one of the most basic reserving techniques called the Chain-Ladder Method (aka The Development Method). It should be noted that this method can be used for various types of data besides reported losses.
Thanks so much for posting this! It's really incredible that you're so willing to spend your time and energy teaching this to random people on the internet. Great stuff man!
+++1 Couldn't agree more
Richard Vazquez more to come, glad you find it helpful!
Hey Alex, just passed Exam P on my second try two days ago (got a 5 on my first try in May :/ ). I just want to say your work on this CZcams channel definitely does not go unnoticed. I found myself coming back time and time again during my studies just to hear a calming, reassuring voice because it seems as if though the actuarial forums and discussion boards are where dreams of becoming an actuary go to die with everyone continuously saying how difficult and impossible these exams are. I don't know if that makes total sense, but I just wanted to say thank you giving your free time back to the actuarial community.
Hey Mike, happy to hear you passed and I'm glad the videos were helpful! I totally understand where you're coming from. Reading forums contributed to me over studying for exam p haha.
Wow this was great👍🏿. I appreciate this because none of us who aren’t in the actuary profession yet really knows what goes on behind the scenes🤷🏿♂️
Great work. Loads of information. I hope we'll be seeing more related videos. Keep it up👍
Can you provide a link to the excel sheet used in this presentation
The reason for under reserving is most likely inflation, which can be incorporated into the calculations.
This is really neat. Will you be posting more of these Excel-type tutorials that are highly relevant to an actuarial or finance job, things almost never discussed in an undergrad curriculum? (tongue firmly in cheek)
Daniel Yang yes I plan to make another video on a more advanced reserving technique. Glad you found it helpful!
Please make excel/vba tutorials! I am starting my first actuarial internship in January, and want to start working on those skills.
Thanks for an in depth explanation
4:33 the $2578 amount does not represent the reported losses in 2010 Q1 for a loss incurred in 2000, but is the 'total' reported loss as of 2010 Q1 for a loss incurred in 2001. the total reported loss for a loss incurred in 2000, but reported in 2010 q1 is M4-L4 = 0, thus suggested that the loss has been reported in full.
Hey man. Glad I found your channel. A lot of these videos have been helpful. Think you could make a video about what it's like to be a career changer? ..how they're viewed at these companies? I'm 35 and about to take the p exam. I've had somewhat similar jobs (financial analyst type roles), and I'm about to finish a masters in finance. But I also worked blue collar type jobs for most of my life before going back to school. Do I have a chance at breaking into the actuarial field?
Justin Wright yes, maybe I will make a video about that. I think it would be useful.
Hey, Can you please share the link to the spreadsheet used in the video so we can practice and understand more.
sir if i have only underwriting year and many losses (claims paid) for each year more than the capacity of the traingle, and i decide to sum them up to each year, what should i do the fill in the rest of the cells when developing the first triangle
And the result of final losses increasing over the evaluation year for the same AY is telling us that the CDF wasn't really set correctly? Or that our historical claims just have different pattern compared to how the new claims are coming in
It's really helpful :)
I wanted to know what are the disadvantages of using chain ladder method while estimating reserve....
That's insightful. Please can you share your spreadsheet.
Thank you for sharing this. I am from Mexico. Also could you explain a previous step, I mean, how to build the table from the database, how you built the dynamic table?
Thanks
All the best
Great suggestion!
Do you by any chance have this excel spreadsheet?
How familiar were you with excel before going into this internship?
Roronoa Zoro I had no formal experience. I'm basically learning as I go.
c'est très utile merci beaucoup. Je peux avoir le fichier .xls
can u send me your file excel ?
yeah man great video but you can literally press the windows key and G and screen record lol