Case Outstanding

Friedland's Technique #1

• Case O/S¹
  • \(\to\) Remaining in Case
• Incremental Paid claims
  • \(\to\) Paid on case \(=\dfrac{\text{Current Paid}}{\text{Previous O/S}}\)

Appropriateness?

• No IBNR \(\to\) Claims Made
• For RY analysis, as it has no pure IBNR
• For AY analysis, and most claims are reported in the first maturity
• When Case O/S provides useful info about claims to be observed.

Friedland's Technique #2

When you don't have a triangle \(\triangle\) to work with.

• Case O/S
• Industry Reported CDF
• Industry Paid CDF

Appropriateness?

• Industry CDFs may not be appropriate for the particular self-insured entity
• Projections distorted by case reserves of large losses**
• CDFs of immature years are highly leveraged \(\implies\) highly volatile estimates
• When only Case O/S is available.

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1. Note that Case O/S is never incremental, it converges to zero ↩