An Algebraic Reserving Method for Paid Loss Data

Sooner or later a casualty actuary is confronted by the question, "Given a history of paid loss amounts by calendar year, what should reserves be?" Often, it is not possible to accurately gather and analyze additional data within the time constraints for the reserving decision. The algebraic reserving method presented in this paper offers one approach to rapidly addressing this problem. The paper consists of four sections - General Considerations, Formulas, Examples, and Conclusions.