Allocated Loss Adjustment Expense Liabilities

Abstract
This paper sets forth a simple, practical, and straightforward method of establishing liabilities for allocated loss adjustment expenses (ALAE). The method relies on adjusted calendar year paid ALAE to paid loss ratios. The ratios are age adjusted based on the age of the underlying loss liabilities.
Volume
LXXXIII
Page
101-114
Year
1996
Categories
Actuarial Applications and Methodologies
Reserving
Loss Adjustment Expense Reserving
Publications
Proceedings of the Casualty Actuarial Society
Authors
Ruth E Salzmann