Loss Development and Bornhuetter-Ferguson Methods - A Visual Approach - Actuarial 101

This video demonstrates the mechanics of the loss development methods and the Bornhuetter-Ferguson methods with the help of several graphical illustrations. The loss development and BF methods are the most commonly used actuarial techniques for estimating ultimate losses and loss reserves. Chapters 0:00 - Introduction 1:47 - Paid Loss Development Method 3:33 - Incurred Loss Development Method 4:54 - Paid Bornhuetter-Ferguson Method 8:12 - Incurred Bornhuetter-Ferguson Method 11:06 - Graphical Comparison of All 4 Methods 12:15 - Impact of Increase in Paid Loss 13:19 - Impact of Increase in Case Reserves 14:14 - Summary of Formulas and Methods For more information, visit us at https://archeractuarial.com/ Disclaimer: Information presented in this video should not be relied upon as actuarial or accounting advice, which should be provided by a credentialed actuary or accountant familiar with the details of your organization's risk management program.