Analysis of non-life insurance risk in the additive loss reserving model : An application to Turkey

Claims development results are the changes in claims reserves and one of the major risk drivers in the profit and loss statement of a general insurance company, In this study, claims development result, future one year and multi-year reserve and premium risk computed with additive loss reserving model using data of an insurance company serving in the mandatory traffic insurance for the 2007-2013 periods. The estimators of premiums were calculated by using linear and non-linear regression methods. In conclusion, the reserve risk is same for two methods, but premium risk is increased for the non-linear regression method