What is the source of the LDFs (loss development factors) and other trending data in Loss Forecaster? Are they specific to the selected industry?

The loss development factors (LDFs) and inflation trending factors within Loss Forecaster are updated approximately once per year. The factors are developed internally by actuaries with SIGMA Actuarial Consulting Group and are an aggregation of a variety of sources, including data from our broad base of clients, other actuaries, and insurance companies, as well as published data sources (such as AM Best and NCCI).

SIGMA uses these same factors in their own actuarial consulting engagements if a client does not have enough unique data to consider.

While the factors used for inflation trending are specific to the selected industry, the LDFs are across all industries and are national averages for each particular coverage. For workers compensation analyses only, state-specific LDFs and benefit level factors are also available.