Estimating Incurred Claims

The problem of estimating the final amount after settlement of Motor and General Third Party claims incurred during an underwriting year is of considerable importance for direct writing companies, as well as for reinsurers. While methods of considerable precision have been proposed for direct writing companies' business (ref. 1,2), a less exact but simpler method, which is applicable, i.a., to non-proportional reinsurance, could also be of interest.