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

Financial Innovation

Table 7 Parameter estimates recovered from paid losses data and their corresponding standard errors (SEs)

Development	Bodily injury				Direct compensation				Accident benefit
year	\(\phi _{j,1}\)	SE (\(\phi _{j,1}\))	\(\sigma _{j,1}\)	SE (\(\sigma _{j,1}\))	\(\phi _{j,2}\)	SE (\(\phi _{j,2}\))	\(\sigma _{j,2}\)	SE (\(\sigma _{j,2}\))	\(\phi _{j,3}\)	SE (\(\phi _{j,3}\))	\(\sigma _{j,3}\)	SE (\(\sigma _{j,3}\))
1	1.7883	0.0436	0.1573	0.0097	0.1295	0.0037	0.0132	0.0008	1.0047	0.0491	0.1771	0.0123
2	1.1104	0.0273	0.0945	0.0037	0.0013	0.0000	0.0003	0.0000	0.3272	0.0273	0.0946	0.0037
3	0.7153	0.0160	0.0529	0.0012	0.0004	0.0001	0.0002	0.0000	0.1931	0.0203	0.0673	0.0019
4	0.4377	0.0128	0.0405	0.0007	0.0001	0.0001	0.0003	0.0000	0.1308	0.0136	0.0431	0.0008
5	0.2550	0.0077	0.0232	0.0003	0.0001	0.0001	0.0003	0.0000	0.0823	0.0060	0.0181	0.0002
6	0.1360	0.0046	0.0131	0.0001	0.0001	0.0000	0.0001	0.0000	0.0532	0.0041	0.0116	0.0001
7	0.0732	0.0033	0.0087	0.0000	0.0000	0.0000	0.0001	0.0000	0.0370	0.0027	0.0072	0.0000
8	0.0358	0.0010	0.0024	0.0000	0.0000	0.0000	0.0001	0.0000	0.0269	0.0030	0.0075	0.0000
9	0.0213	0.0020	0.0044	0.0000	0.0000	0.0000	0.0000	0.0000	0.0179	0.0010	0.0021	0.0000
10	0.0121	0.0017	0.0034	0.0000	0.0000	0.0000	0.0000	0.0000	0.0152	0.0015	0.0030	0.0000
11	0.0073	0.0012	0.0020	0.0000	0.0000	0.0000	0.0000	0.0000	0.0122	0.0020	0.00169	0.0000
12	0.0048	0.0003	0.0004	0.0000	0.0000	0.0000	0.0000	0.0000	0.0096	0.0012	0.0017	0.0000
13	0.0024	0.0007	0.0007	0.0000	0.0000	0.0000	0.0000	0.0000	0.0056	0.0001	0.0001	0.0000
14	0.0016	0.0000	0.0004	0.0000	0.0000	0.0000	0.0000	0.0000	0.0057	0.0000	0.0000	0.0000