Comparison Between the Chain Ladder Method and the Bornhuetter-Ferguson Method for Third Party Liability Insurance
摘要
The Chain-ladder method (CLM) and the Bornhuter-Ferguson method (BF method) are the most widely used methods from the insurance companies for calculating the claims reserves for covering claims that have been incurred but not reported (IBNR). The purpose of this paper is to estimate the required “pending payment” reserves using the both methods and to make comparisons between the results obtained. Some numerical experiments have been presented.