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DOI: 10.17654/MS102040687
a
Department of Mathematics, Faculty of Mathematics and Natural Sciences, Universitas Padjadjaran, Bandung, Indonesia
b
Department of Marine Science, Faculty of Fisheries and Marine Science, Universitas Padjadjaran, Bandung, Indonesia
c
Faculty of Informatics and Computing, Universiti Sultan Zainal Abidin, Malaysia
Abstract
Outstanding claims reserving play an important role to maintain the stability of the car insurance company. The accuracy in
estimating of outstanding claims reserving is influenced by inflation risks. Therefore, in this study, the outstanding claims
reserving estimation was conducted by using chain ladder and separation methods, while the inflation risk measurement
was conducted by linear regression analysis. Furthermore, the prediction error of the estimate outstanding claims reserving
can be determined by a bootstrap procedure. The results show that the estimated outstanding claims reserving by the
separation method is better than the chain ladder method, because claims inflation explicitly included in the model. Based
on data used, car insurance company must be provided the total outstanding claims reserves with separation method of
77501587520 IDR and the percentage of prediction errors is 1.1%. © 2017 Pushpa Publishing House, Allahabad, India.
Author Keywords
Bootstrap; Chain ladder method; Inflation; Outstanding claims reserves; Regression analysis; Separation method
References
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Published Online April 2016 in SciRes
Correspondence Address
Subiyanto; Department of Marine Science, Faculty of Fisheries and Marine Science, Universitas PadjadjaranIndonesia;
email: subiyanto17@gmail.com
ISSN: 09720871
Language of Original Document: English
Abbreviated Source Title: Far East J. Math. Sci.
Document Type: Article
Source: Scopus
https://www.scopus.com/citation/print.uri?origin=recordpage&sid=&src=s&stateKey=... 30/8/2017