If the incurred and paid amounts for a period are equal, Loss Forecaster automatically assumes the period is fully closed. Since no further development will occur on a closed period an LDF of 1.000 is applied. To circumvent this you can increase the incurred amount of a closed period by $1 so that Loss Forecaster will treat it as open.
Articles in this section
- What types of analyses can Loss Forecaster provide for my client with different loss limits (deductibles) by year?
- What causes an LDF of 1.0 and how can this be avoided?
- Reserve Analysis - Why can't I choose "Incurred" method?
- Is there a way to take the unlimited LDFs from Loss Forecaster and adjust them for deductible size to get limited LDFs without developing unique triangles at various retentions and approximating the relativities at various retentions?
- How can I measure the effectiveness of my loss control program?
- What is the range of my projected losses?
- The carrier defines the premium. How accurate is the carrier's estimate of my losses?
- How do I accurately budget my self-insured program?
- Our loss experience is improving. How do I renegotiate my letter of credit?
- In a loss projection evaluating both methods, why does Loss Forecaster shows the estimated ultimate paid losses to be much larger than the estimated ultimate incurred losses?
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