How can one compare the ultimate liability estimated using this method with CL,loss ratio, BF and etc when you have only claims paid development triangle?
The reason I am asking the above question is that the while calculating average claim severity the numerator and the denominator may not be consistent if you have many partially paid claims during the initial accident years.
what should one do to make this method comparable with the other methods despite the presence of partially paid claims?
Looking at fully closed claims is one of the options. However we cannot omit partially paid claims development, can we? Reported claim development triangle is another.
Any other suggestions?
The reason I am asking the above question is that the while calculating average claim severity the numerator and the denominator may not be consistent if you have many partially paid claims during the initial accident years.
what should one do to make this method comparable with the other methods despite the presence of partially paid claims?
Looking at fully closed claims is one of the options. However we cannot omit partially paid claims development, can we? Reported claim development triangle is another.
Any other suggestions?
Frequency severity method