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Berquist-Sherman

Case O/S Technique

Suppose if the case outstanding changes in the company: - Due to a change in the process

  1. Select the Severity trend (\(\dfrac{\text{Paid Losses}}{\text{Paid Counts}}\)) by looking at the paid loss triangle
  2. Downward develop the latest CY severities in the case outstanding triangle using the trend factor and obtain the Adjusted Average Case Outstanding
  3. Use the claim counts to get back the Reported claims.

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