Distinguish the line characteristics that drive reserving behavior: long versus short tail, low versus high frequency, and occurrence versus claims-made coverage.

Free CAS Exam 5 (Basic Ratemaking and Reserving) lesson in Estimating Claim Liabilities. 12 min read, ~1,812 words.

Tail length is how long it takes claims to be reported and fully paid; long tail means more IBNR and more estimation risk. Long-tail lines (workers comp, medical malpractice, general liability) develop for years; short-tail lines (property, auto physical damage) settle fast. Frequency is claim count per exposure; severity is...

What this lesson covers

• Content
• Example 1
• Example 2
• Common Mistakes
• Check Your Understanding
• Exam Shortcuts

Learning objectives

• B4

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