If the incurred and paid amounts for a period are equal, Loss Forecaster automatically assumes that period is fully closed out and that no further development will occur, which is why an LDF of 1.000 is applied. To circumvent this, you can increase the incurred amount of a closed out period by $1 so that Loss Forecaster will then 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?
- Reserve Analysis - Why are my LDFs 1.000? How do I avoid this?
- Reserve Analysis - Why can't I choose "Incurred" method?
- Is there a way to take the unlimited LDFs that are built into Loss Forecaster and adjust them for deductible size to get limited LDFs without developing my own book of business triangles at various retentions and approximating the relativities at various
- 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 where we are evaluating both methods, Loss Forecaster shows that the estimated ultimate paid losses are much larger than the estimated ultimate incurred losses. Why would that be?
Comments
0 comments
Please sign in to leave a comment.