Knowledge, Service, and Solutions

Streamlined Solution From ReservePrism

Let us summarize how ReservePrism streamlines your loss-reserving project. The data used are not real; some steps are still under construction

ReservePrism Workflow

This is the main workflow again


You are doing reserve analysis from a claim file

  • Multiple Lines
  • Multiple Coverage per Line
  • Coverage are Short Tail liabilities, single payment
  • You are interested in reserves, IBNR, and case development

Let us suppose this is your claim file. Load it to ReservePrism, and form a project.

Your requirements:

  • Line 1 analysis
  • Line 1's separate analysis on Liability coverage
  • Line 1 and Line 2 combined analysis, on all coverage
  • Line 3 should be excluded for individual analysis
  • You also need the whole book of business analysis

ReservePrism does not care about these requirements at this stage. You pick what to analyze when the simulation finishes.

Loss Fit

For each line and for each coverage, ReservePrism Project Wizard will do a default parameter fit from the claim file. You could also manually adjust them based upon your judgment.

Report Lag fit

This is another example for Report Lag parameter fit

Exponential (rate=0.009247)

Difference=16 days

Some other parameters require your input, or you can simply use system defaults and change them later

  • Trend, Exposure, etc
  • Limit, Deductible distribution (if the claim file does not have those information)
  • Case Reserve Adequacy on 0, 40%, 70% and 90% valuation range
  • Case Reserve Threshold, Est P(0)
  • Etc

After defining the scope of the project, start the simulation.

Load Simulation Result

After the simulation is finished, simulated claim and transaction results are automatically stored inside the database

Simulation Result Analysis

ReservePrism will analyze synthetic claims based upon your requirement on step 3 above, with:

  • Confidence Level Analysis on all runs
  • Individual Analysis on each run
  • Analysis includes IBNR, IBNER (Case Development), Reserve, Ultimate Loss, Fill Rectangle, etc
  • All the development Triangles Distributions (Percentile) are also available