Method Comparison
The Method Comparison and bench-marking functionality enable a user to compare 2 or 3 Methods. The system enables the user to select different Methods across the application from different projects irrespective of their approval status. The user is also able to compare all Methods even if they are not approved.
When the Method Comparison Tab is clicked, the comparison data between the Methods appear by default. Depending on which Method Type was selected in the Method Type Field, the remaining Methods appear as drop-down lists. Select the required methods from the drop-down lists to compare the desired Methods.
Additionally, click the Excel icon to view the comparison details of the Method in the Excel document.
| Field | Description |
|---|---|
| Accident (Month, Quarter, Half-Year, Year) | This is the vertical column being used in the Paid and Reported Loss Triangles. Here the number of years is the same as the data being used in these Triangles. |
| CL Ultimate | This column represents the total estimated cost of all claims for a given period (AY, UY or RY), including both reported and future claims that are yet to emerge by using the Chain Ladder Method |
| BF Ultimate | This column represents the total estimated cost of all claims for a given period (AY, UY or RY), including both reported and future claims yet to emerge using the Bornhuetter Ferguson (BF) Method. |
| ULR Ultimate | This column represents the total estimated cost of all claims for a given period (AY, UY or RY), including both reported and future claims yet to emerge using the ULR Method. |
| Earned Premium | This column represents the portion of an insurance premium that the company has actually 'earned' by providing coverage over time. |
| Incurred Claim Amount | Incurred claim amounts represent the total cost of all claims till date arising from insured events during a given period. |
| CL Reserves | It represents the reserves using the Chain ladder method. This is the amount an insurance company expects to pay in the future, based on how past claims have developed over time. |
| BF Reserves | It represents the reserves using the BF method. This reserve is partly based on actual claims seen so far, and partly on what an insurance company is expected before claims started coming in. |
| ULR Reserves | It represents the reserves using the ULR method. This reserve is the difference between what an insurance company is expected to pay in total and what has already been paid or reported. |
| Selected Method | This column displays the reserve method selected in the comparison tab—Chain Ladder (CL), Bornhuetter-Ferguson (BF), or Expected Loss Ratio (ULR)—as chosen by clicking on the corresponding column amounts. |