From something that seemed quite a simple term, now I'm starting to get confused..
If a case estimate = full estimated loss on a claim (i.e. paid + O/S) .... then isn't case estimate the same as incurred? (if this is the definition of incurred you are using). Reading the course notes in Chp12 Pg 36, I interpreted that a case estimate follows the definition at the start of this parargraph i.e. a latest estimate of costs.
The definition used above in the thread where it refers to only O/S amounts sounds more like a case reserve (which is case estimate - paid already)? Is this just down to definitions as I'm not sure which one the course notes is referring to? (now in Chp12 Pg36)
If the first is true, what do we get from the diagnostic, case estimate to incurred ratio? What is that telling us?
Last edited: Apr 25, 2020