Financial Innovation

Table 4 Correlation between the incurred claims and paid losses in the same LOB

From: Claim reserving for insurance contracts in line with the International Financial Reporting Standards 17: a new paid-incurred chain approach to risk adjustments

s	\(\rho _{s,1}\)	\(\rho _{s,2}\)	\(\rho _{s,3}\)
0	0.9673	0.9515	0.9765
1	0.9724	0.8911	0.8572
2	0.9611	0.8014	0.5356
3	0.9400	0.7680	0.1920
4	0.9320	0.7764	0.1341
5	0.9350	0.6842	0.4612
6	0.9242	0.6654	− 0.0949
7	0.9266	0.6734	− 0.3408
8	0.8608	0.7925	− 0.5931
9	0.8521	0.6711	0.02666
10	0.5784	0.6987	− 0.2620

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