Read development triangles as diagnostics, spotting shifts in severity, frequency, and loss-to-premium relationships that signal operational change.

Free CAS Exam 5 (Basic Ratemaking and Reserving) lesson in Estimating Claim Liabilities. 20 min read, ~2,929 words.

Before any count ratio or average value, pin definitions and data: CNP in counts, reopened-claim coding, expense-only claims, large-claim distortion, deductibles and retentions, and the partial-payment mismatch in the average paid triangle. Build parallel triangles (paid loss, reported loss, closed counts, reported counts, average severity, paid-to-reported ratio) and read them...

What this lesson covers

• Content
• Example 1
• Example 2
• Example 3
• Common Mistakes
• Check Your Understanding
• Exam Shortcuts

Learning objectives

• B8

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