Cumulative Triangle

The Cumulative Triangle is derived from the Incremental Triangle and is a standard way of displaying the subsequent development of Losses and Premium from their Start Dates, Accident, and UW Years in this case. Developments such as Yearly, Monthly, Quarterly, and Half-Yearly are covered in the application.

The Cumulative Triangle does not apply to the Outstanding, Partly Paid (Amount and Number) Triangles. The Yearly, Monthly, Quarterly, and Half-Yearly developments apply to all Triangles.

To derive the Cumulative Triangle from the Incremental Triangle, each value in the Incremental Triangle adds the previous number, the left-hand side number, from the Cumulative Triangle. The number in the second position is the sum of the number in the first position in the Cumulative Triangle, and the number in the second position in the Incremental Triangle in each row.

Depending on the development period for the Triangle, the Triangle Page will display the following developments:

  • Monthly – Monthly Triangle by default displays 1 Year (12 Developments).
  • Quarterly – Quarterly Triangles display 2 years (8 Developments).
  • Half-yearly – Half-Yearly Triangles display 5 Years (10 Developments).
  • Yearly – Yearly Triangles display 10 Years (10 Developments).

For the triangles based on outstanding losses, the Outstanding Loss column is used for Indemnity and Expense. For Paid Losses, the column to be considered is Paid Loss and the Transaction Type is considered for Indemnity and Expense. These columns are in addition to other columns such as Lines of Business, Business Unit, Coverage, and so on based on the selection criteria. To create a Triangle, the logic is to first summarize the data based on the filter selection such as Business Unit, Lines of Business, Product, Sub Product, Coverage, Region, Currencies, Loss Type, and so on based on the selected dimension.

The Loss Limit field is where a user can give the incurred loss amount as per their business up to which claims must be considered

By default, multiple varieties of Triangles are pre-configured within the application and these Triangles can be copied or modified but cannot be deleted.

The Triangle can be Draft, Submitted, Approved, or Rejected based on the status of the work progress.

The user that has Admin rights has the option to Approve or Reject a Triangle. These options are only available when the status of a Triangle is Submitted.