Chain Ladder Method

The chain ladder is a widely used reserving technique that projects ultimate claims by applying age-to-age development factors, derived from historical loss triangles, to the latest reported amounts. It assumes future development follows past patterns, making it transparent and straightforward, though sensitive to unusual experience in immature periods.

Related terms

• Bornhuetter-Ferguson Method
• Loss Development
• IBNR (Incurred But Not Reported)

See also

• Auditability in actuarial workflows