It is the actuary's job to determine the value of the unpaid losses and loss expenses for which a company is liable at any point in time. This is done in bulk to reflect payments on cases not yet reported IBNR (Incurred But Not Reported) and adjustments to case reserves established by the claims examiners IBNE (Incurred But Not Enough). How can a value can be placed on accidents which have happened but have not yet been reported to the claims department? The next two pages will help to explain this.
To conduct a study of an insurer's claim information, the actuary first needs to analyze and evaluate the following within the company's various departments.