Work out loss reserve development instantly with clear inputs, formula shown and shareable results.
Claims take years to settle, so reported figures understate the final cost. A loss development factor from historical triangles scales reported losses up to ultimate; the gap above reported is the IBNR provision for claims not yet fully known.
Chain ladder
Ultimate = Reported × LDF; IBNR = Ultimate - Reported; Reserve = Ultimate - Paid
Case reserves are the adjuster's estimate on known claims. IBNR covers claims incurred but not yet reported, plus future development on known ones.
From age-to-age ratios in a development triangle of the insurer's own history, blended with industry benchmarks for thin data.