Chapter Preview. This chapter introduces a classic actuarial reserving problem that is encountered extensively in property and casualty as well as health insurance. The data are presented in a triangular format to emphasize their longitudinal and censored nature. This chapter explains how such data arise naturally and introduces regression methods to address the actuarial reserving problem.
In many types of insurance, little time elapses between the event of a claim, notification to an insurance company, and payment to beneficiaries. For example, in life insurance notification and benefit payments typically ...