Comparative Analysis of Loss Ratio Calculations Using Occurrence-Based and Underwriting-Year-Based Run-Off Triangles

This research examines two approaches to calculating loss ratios in actuarial science – occurrence-based and underwriting-year-based run-off triangles. By comparing these methods, the study assesses their effectiveness in forecasting claims, ensuring reserve adequacy, and managing risk exposure. Utilizing simulated and historical data, it highlights how each approach impacts pricing and reserving strategies, offering practical insights to improve decision-making for actuaries and insurance stakeholders.