Have you frequently used the Bornhuetter-Ferguson method to develop ultimate loss ratios?
How strong would you say your dependence on the BF method was overall in selection of final ultimates for the current accident year?
These are just two of the questions in a CAS membership survey designed by the Bornhuetter-Ferguson Initial Expected Loss Ratio (BF IELR) working party.
The goal of the working party is to produce a paper regarding the initial expected loss assumption in the Bornhuetter-Ferguson reserving method. To assist the working party with the development of the paper, we are polling the CAS membership on current practices across different types of employment.
Complete the online survey now at https://www.surveymonkey.com/s/SGRDTCG. The survey consists of 24 questions and should take about 15 minutes to complete. The deadline for completing the survey is September 26, 2012.
With many competent actuaries using the Bornhuetter-Ferguson method, there are probably many very good initial expected loss approaches already in use, but not documented. On behalf of the working party, thank you for completing the survey and sharing your approach. We will compile the results and report back to the membership on our conclusions about the efficacy of current practices.
