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Theoretical and Applied Economics
No. 7 / 2007 (512)

Methodological Aspects Regarding the Process of Estimating the Reserve for the Un-cleared Damages

Constantin Anghelache
Academia de Studii Economice, Bucuresti
Gabriela Anghelache
Academia de Studii Economice, Bucuresti

Abstract. This article emphasizes a series of aspects concerning the estimation of the reserve for the un-cleared damages. Such an activity is of an actuarial nature as it implies a present evaluation of future uncertain phenomena. Here we have the methods being used for the damages estimation, stressing out the individual estimation, the statistical methods which are used, the method of the average cost per damage, the method of the damage rate or the reserve estimation for the damages which are occurring without being yet reported. The analyzed theoretical aspects are accompanied by empirical examples meant to give the researcher (reader) the opportunity of a clearer understanding the mechanism in discussion. The examples are of a scholastic nature to the extent they are aiming a more explicit approach of the used mechanism only, without representing elements of a case analysis.

Keywords: estimation; damage; damage rate; average cost; run-off triangle.

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