On Geometrical Approach of Chain Ladder Method: Properties and Applicatio

Thara Belhamra, Mohamed Riad Remita, Halim Zeghdoudi

Abstract



In this paper, a new geometrical approach of Chain Ladder method aspect is given. More precisely, development factors (k_j ) are estimated by graphical technique, therefore it is required to compute the tangents for each development year j, and then the lower circles are estimated using observed circles and tangents. In order to validate the proposed approach a numerical application is conducted, the obtained results are similar to those computed by chain-Ladder method and stochastic incremental approach. Moreover, some examples are given to illustrate and show the effectiveness of the proposed approach.

Keywords


IBNR, Chain Ladder, Graphical Approach, provision.

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