Munich Chain Ladder: A Reserving Method that Reduces …

1 Munich Chain ladder : A ReservingMethod that Reduces the Gapbetween IBNR Projections Based onPaid Losses and IBNR ProjectionsBasedonIncurredLossesby Gerhard Quarg and Thomas Mack Munich Chain ladder by Dr. Quarg and Dr. Mack isbeing reprinted inVa r i a n c eto give this important paperwider visibility within the actuarial community. The edi-tors ofVa r i a n c einvited the authors to submit their paperfor republication because we believe that the techniquesdescribed in their work should be known to all actuariesdoing reserve analysis. We also hope to stimulate furtherresearch in this area. This paper is reprinted fromBl tterder Deutschen Gesellschaft f r Versicherungs- und Finanz-mathematik, volume 26, number 4, 2004, pages 597 thank the editors of that journal and the authors forallowingVa r i a n c eto publish the methods , Chain ladder , loss development.

2 Reconciliation of paidand incurred projections266 CASUALTY ACTUARIAL SOCIETYVOLUME 2/ISSUE 2 REPRINTACKNOWLEDGMENTM unich Chain LadderVOLUME 2/ISSUE 2 CASUALTY ACTUARIAL SOCIETY267 VarianceAdvancing the Science of Risk268 CASUALTY ACTUARIAL SOCIETYVOLUME 2/ISSUE 2 Munich Chain LadderVOLUME 2/ISSUE 2 CASUALTY ACTUARIAL SOCIETY269 VarianceAdvancing the Science of Risk270 CASUALTY ACTUARIAL SOCIETYVOLUME 2/ISSUE 2 Munich Chain LadderVOLUME 2/ISSUE 2 CASUALTY ACTUARIAL SOCIETY271 VarianceAdvancing the Science of Risk272 CASUALTY ACTUARIAL SOCIETYVOLUME 2/ISSUE 2 Munich Chain LadderVOLUME 2/ISSUE 2 CASUALTY ACTUARIAL SOCIETY273 VarianceAdvancing the Science of Risk274 CASUALTY ACTUARIAL SOCIETYVOLUME 2/ISSUE 2 Munich Chain LadderVOLUME 2/ISSUE 2 CASUALTY ACTUARIAL SOCIETY275 VarianceAdvancing the Science of Risk276 CASUALTY ACTUARIAL SOCIETYVOLUME 2/ISSUE 2 Munich Chain LadderVOLUME 2/ISSUE 2 CASUALTY ACTUARIAL SOCIETY277 VarianceAdvancing the Science of Risk278 CASUALTY ACTUARIAL SOCIETYVOLUME 2/ISSUE 2 Munich Chain LadderVOLUME 2/ISSUE 2 CASUALTY ACTUARIAL SOCIETY279 VarianceAdvancing the Science of Risk280 CASUALTY ACTUARIAL SOCIETYVOLUME 2/ISSUE 2 Munich Chain LadderVOLUME 2/ISSUE 2 CASUALTY ACTUARIAL SOCIETY281 VarianceAdvancing the Science of Risk282 CASUALTY ACTUARIAL SOCIETYVOLUME 2/ISSUE 2 Munich Chain LadderVOLUME 2/ISSUE 2 CASUALTY ACTUARIAL SOCIETY283 VarianceAdvancing the Science of Risk284 CASUALTY ACTUARIAL

3 SOCIETYVOLUME 2/ISSUE 2 Munich Chain LadderVOLUME 2/ISSUE 2 CASUALTY ACTUARIAL SOCIETY285 VarianceAdvancing the Science of Risk286 CASUALTY ACTUARIAL SOCIETYVOLUME 2/ISSUE 2 Munich Chain LadderVOLUME 2/ISSUE 2 CASUALTY ACTUARIAL SOCIETY287 VarianceAdvancing the Science of Risk288 CASUALTY ACTUARIAL SOCIETYVOLUME 2/ISSUE 2 Munich Chain LadderVOLUME 2/ISSUE 2 CASUALTY ACTUARIAL SOCIETY289 VarianceAdvancing the Science of Risk290 CASUALTY ACTUARIAL SOCIETYVOLUME 2/ISSUE 2 Munich Chain LadderVOLUME 2/ISSUE 2 CASUALTY ACTUARIAL SOCIETY291 VarianceAdvancing the Science of Risk292 CASUALTY ACTUARIAL SOCIETYVOLUME 2/ISSUE 2 Munich Chain LadderVOLUME 2/ISSUE 2 CASUALTY ACTUARIAL SOCIETY293 VarianceAdvancing the Science of Risk294 CASUALTY ACTUARIAL SOCIETYVOLUME 2/ISSUE 2 Munich Chain LadderVOLUME 2/ISSUE 2 CASUALTY ACTUARIAL SOCIETY295 VarianceAdvancing the Science of Risk296 CASUALTY ACTUARIAL SOCIETYVOLUME 2/ISSUE 2 Munich Chain LadderVOLUME 2/ISSUE 2 CASUALTY ACTUARIAL SOCIETY297 VarianceAdvancing the Science of Risk298 CASUALTY ACTUARIAL SOCIETYVOLUME 2/ISSUE 2 Munich Chain LadderVOLUME 2/ISSUE 2 CASUALTY ACTUARIAL SOCIETY299