How claims triangulations can be used to improve accuracy

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Reference no: EM133273907

Question - You are an underwriter for JN plc, a specialist commercial motor insurer. A recent review of the claims reserving process for JN plc's large fleets account has established that, over the past two years, claims reserving has been inadequate, with the use of burning cost calculations.

The review concluded that this inadequate claims reserving for large fleets claims, was largely due to bodily injury claims settlements being higher than expected.

(a) Explain, with justification, three underwriting implications for JN plc of inadequate claims reserving.

(b) Discuss how claims triangulations can be used to improve the accuracy of JN plc's claims reserving.

Reference no: EM133273907

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