Friedland01.Overview

Reading: Friedland, J.F., Estimating Unpaid Claims Using Basic Techniques, Casualty Actuarial Society, Third Version, July 2010. The Appendices are excluded.

Chapter 1: Overview (with links to topics in chapters 1-6)

Study Tips

The Friedland source text is divided into 4 parts:

Part 1: Introduction – Chapters 1-2

Part 2: Information Gathering – Chapters 3-6

Part 3: Basic Methods for Estimating Unpaid Claims – Chapters 7-15

Part 4: Estimating Unpaid Claims Adjustment Expenses – Chapters 16-17

Parts 3 and 4 are highlighted in green because that's where 85-90% of the reserving questions come from and our good friend Alice-the-Actuary wants you to get to that material ASAP! Now, there is important basic information in Parts 1 & 2, but we're going to cover it quickly. Youll get plenty of opportunities to solidify your understanding of that basic material as you work through Parts 3 & 4.

This wiki article provides links to everything you need to know from Parts 1 & 2 (Chapters 1-6). Do not linger here (or you might upset Alice!) You'll absorb the important information as you work problems in chapters 7-17.

Estimated study time: 2 days for all of Parts 1 & 2 (then review as needed)

BattleTable

Based on past exams, the main things you need to know (in rough order of importance) are:

• fact A...
• fact B...

reference	part (a)	part (b)	part (c)	part (d)
E (2014.Fall #13)

In Plain English!

The BattleTable above shows prior exam questions relevant to chapter 1. BattleTables showing prior exam questions for chapters 2-6 can be accessed either through the links below or directly through the Ranking Table.

This wiki article provides a concise listing of topics from chapters 1-6 with links to the appropriate material.

Part 1 - Chapter 1 - Overview

• unpaid claims estimates are important to: internal managers, investors, insurance regulators
• key terminology

Part 1 - Chapter 2 - The Claims Process

Direct link to wiki article: Chapter 2 - The Claims Process

Subtopics:

• Claim Fact Summary
  • Friedland's is too complicated. Do 2 or 3 separate simpler examples
• Characteristics of insured claims
  • claim activity extends over a period of time
  • estimated value of claims changes over life of claim
  • claim cam have different types of payments
  • many dates associated with each claim

→ make a simple practice template to reinforce these concepts

Part 2 - Chapter 3 - Understanding the Data

Direct link to wiki article: Chapter 3 - Understanding the Data

Part 2 - Chapter 4 - Meeting with Management

Direct link to wiki article: Chapter 4 - Meeting with Management

Part 2 - Chapter 5 - The Development Triangle

Direct link to wiki article: Chapter 5 - The Development Triangle

Part 2 - Chapter 6 - The Development Triangle as a Diagnostic Tool

Direct link to wiki article: Chapter 6 - The Development Triangle as a Diagnostic Tool