If both methods of development (Incurred and Paid) are utilized, LF will recognize that all claims are closed through the fact that the user-input reported incurred losses are equal to user-input reported paid losses for the period. When this is the case, LF will automatically adjust the period’s incurred and paid loss development factors (LDF) to 1 so as to not allow for any further development. However, if the user is only using one method of development (either Incurred or Paid), then the user will need to manually input a LDF of 1 for any closed periods.
Articles in this section
- Why am I getting the message, "Paid cannot be greater than occurred.” on the Limited Incurred/Paid Losses column,
- What is the difference between the two methods of loss development?
- How should I weight the workers compensation inflation trend factors?
- If I have a client’s loss development history, can I use that data in Loss Forecaster?
- How do I enter data on the "Excess of Limit Data Input" page?
- How does LF develop losses for a period which is closed (fully paid)?
- Have the adjusted loss amounts on the pure loss rate report been adjusted to reflect today's dollars, not what was actually paid?
- How can I view or change the factors used for the present value (payout schedule) calculations?
- What value do I enter for the incurred large loss on the "Excess of Limit Data Input" page?
- What do I enter for the loss limit on the "Analysis Setup Data" page?