Loss Reserve Development Tail Factor

Calculate the loss development tail factor using the inverse power curve, exponential decay, or Bondy method to extrapolate cumulative development beyond the last available accident year

Each component has a specific meaning:

• Inverse power curve — The inverse power curve recorded for the scenario being assessed.
• Exponential decay — The exponential decay recorded for the scenario being assessed.
• Or Bondy method — The or bondy method recorded for the scenario being assessed.

Note: Interpret the loss reserve tail result against the thresholds and context described above.

Enter the inverse power curve, exponential decay, or Bondy method for the scenario you are assessing. Calculate the loss development tail factor using the inverse power curve, exponential decay, or Bondy method to extrapolate cumulative development beyond the last available accident year. Use the loss reserve tail result to inform your calculation.