What is the difference between the two? Eg in a incurred triangle the amounts we have (not reserves ) are paid and outstanding case estimates . So what are the outstanding reserves found as part of the diff between ult and latest incurred? And what is the difference between the two m? Are the claims that contribute to outstanding in claims incurred partially paid or not? And how does this value and the value for outstanding claims reserve differ on a incurred triangle?
Hi Roneil Strictly speaking the outstanding claims reserves (OCR) include all of the following: reporting outstanding claims (=case estimates) IBNER pure IBNR reopened claims reserves claims handling expense reserves Whereas incurred claims triangles include paid claims plus reported outstanding claims only (ie the first item above). However, sometimes people loosely refer to outstanding claims as both of these items. However in the exam its best to try and stick to the correct terminology as outlined above. Claims in incurred claims triangles, can either be fully paid, partially paid or completely unpaid.
