With the increased need for more accurate reserving models, taking advantage of the information embedded in individual claims data with appropriate claims development models is a promising alternative compared with traditional aggregate triangles. The future of individual claims reserving is enlarged by the innovative opportunities offered by these alternative models.
With the advent of the Internet, the ability to collect vast quantities of information on people and things began. The rapid expansion of low-cost storage allowed all of this data to be harvested and analyzed for new insights into risk. This article explores what big data is and what captives need to understand.