[[Actuarial Notes Wiki|Wiki]] / [[Exam 5 (CAS)]] / **Loss and Claim Count Analysis**
## Definition
==Loss and Claim Count Analysis== is the diagnostic examination of both loss amounts and claim counts together to identify trends, changes in severity, and development patterns.
## Key Metrics
### Claim Counts
- Reported claim counts by age
- Closed claim counts
- Re-opened claims
- Claim count development factors
### Combined Analysis
```
Average Severity = Total Losses / Claim Counts
Tracking severity over time reveals:
- Inflation trends
- Mix changes
- Settlement patterns
- Case reserve adequacy
```
## Diagnostic Uses
### Identify Changes
```
If claim counts stable but losses increasing:
→ Severity inflation
If losses stable but counts decreasing:
→ Frequency reduction
If both increasing:
→ Both frequency and severity trends
```
### Validate Assumptions
- Compare count vs. loss development
- Assess reasonableness of severity trends
- Identify operational changes
## Related Concepts
- [[Claim Count Triangle#Definition]]
- [[Severity Analysis#Definition]]
- [[Frequency Analysis#Definition]]
## References
- Friedland, Chapter 8