How do loss projections using the same data but different loss limits produce the same results?

In cases where a program’s individual losses are entirely below two different limits (and beneath those limits’ Trending Thresholds), Loss Forecaster will produce reports with identical results. This is due to the fact that Loss Forecaster relies on actual loss experience above a particular limit in order to estimate the impact of that limit.

When this experience does not exist, actuarial techniques are available which simulate losses beyond actual experience. However, these techniques require a significant level of judgment and proficiency, and are therefore not included within the scope of Loss Forecaster. If you would like to utilize loss simulation techniques, SIGMA is available to complete projects of this nature. Schedule a call today with our actuarial staff to discuss the requirements and scope of your particular study.