Hi, Can anyone please help me with the following context ? Page 11, mentioned about disadvantages of reported year cohort and one of the disadvantages are " claims will have come from several different exposure period , different iro volume of business / cover applying , and claim settlement pattern" the part i am confusing is about how claims in the reporting year cohort will subject to different claim settlement pattern ? and what is the meaning of claim settlement pattern here? is that claim handling procedure ? as i would think claims reported / notified in the same period will subject to similar procedure. or is that meaning claims may arise from different accident year therefore may subject different regulation / legislation , therefore will settle very differently ? thank you so much for your time
Yes it means that the claims reported are from different accident years, so as you suggest may be subject to different regulations, legislation or risk environment more generally, which subsequently effects the time taken to settle the claims.
