Individual Claims Reserving models – opportunity and challenges
The current reserving practice consists in most cases in using methods based on aggregated data in a run-off triangle. However, several potential limits of aggregate methods based on triangles have already been highlighted both from a practical and a theoretical point of view. In the context of an increasing need of the insurance market for more accurate reserving prediction and risk assessment, a proper use of the information embedded in individual claims data combined with appropriate individual claims development models represent a promising alternative. In this session, Dr. Alexandre Boumezoued will review individual claims reserving models from their mathematical foundations to their practical use. Particular focus will be dedicated to the innovation opportunity raised by these alternative methods, and the tackling of the main challenges coming with their implementation.