[[Actuarial Notes Wiki|Wiki]] / [[Exam 5 (CAS)]] / **Close Year**
## Definition
==Close Year== is a data organization method where claims are grouped by the year in which they were closed or settled.
## Uses
- Analyzing claim settlement patterns
- Measuring claims department efficiency
- Understanding closure rates
- Limited use in ratemaking
## Characteristics
- Significant lag from accident date
- Useful for operational metrics
- Not commonly used for rate indications
- Helps assess claim handling speed
## Related Concepts
- [[Accident Year#Definition]]
- [[Report Year#Definition]]
- [[Ratemaking Data Organization#Definition]]
## References
- Werner & Modlin, Chapter 3