Advantages and Disadvantages of Methods for Assessment of Loss Reservations in Non-Life Insurance

  • Jelena Kočović University of Belgrade-Faculty of Economics
  • Dejan Dragan Trifunovic University of Belgrade-Faculty of Economics
  • Mirela Mitrašević University of East Sarajevo, Faculty of Busuness Economics Bijeljina

Abstract

This paper analyses the characteristics of the three most commonly used methods for estimating loss reservations: the chain ladder method, the method of expected ratio of losses and Bornhuetter-Ferguson’s method. Our aim is to give a comparative analysis of the results obtained from applying these methods to a practical case, and to put emphasis on their advantages and disadvantages.

Author Biographies

Jelena Kočović, University of Belgrade-Faculty of Economics

Department of Statistics and Mathematics-full professor

Mirela Mitrašević, University of East Sarajevo, Faculty of Busuness Economics Bijeljina

Associate professor

Published
2019-02-20
How to Cite
KOČOVIĆ, Jelena; TRIFUNOVIC, Dejan Dragan; MITRAŠEVIĆ, Mirela. Advantages and Disadvantages of Methods for Assessment of Loss Reservations in Non-Life Insurance. Yugoslav Journal of Operations Research, [S.l.], v. 29, n. 4, p. 553–561, feb. 2019. ISSN 2334-6043. Available at: <https://yujor.fon.bg.ac.rs/index.php/yujor/article/view/618>. Date accessed: 22 dec. 2024.
Citation Formats
Issue
Vol 29 No 4 (2019)
Section
Articles
Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

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