Bornhuetter-Ferguson Method for Loss Reserves and IBNR - P&C Insurance - Actuarial 101

In this video, we discuss the Bornhuetter-Ferguson method (BF method), a popular technique for estimating ultimate loss and loss reserves in P&C insurance. We are going to start with a high-level view of the method and highlight the fundamental concepts that insurance professionals need to understand. Chapters 0:00 - Introduction 0:56 - General Form of BF Method 2:32 - Paid and Incurred Versions - Intro 5:31 - Delving into Unknown Loss 8:09 - The One Question You Should be Asking 9:39 - Example of Paid BF Method 14:23 - Conclusions 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.