[[Actuarial Notes Wiki|Wiki]] / [[Exam 5 (CAS)]] / **Report Year** ## Definition ==Report Year== Report year is a data organization method where losses are grouped by the year in which they are first reported to the insurance company, regardless of when the loss occurred or when the policy was effective. ## Key Features ### Reporting Focus - Based on report date, not occurrence date - Most relevant for claims-made coverage - Fastest development among organization methods ### Applications **Claims-Made Policies** - Natural organization for claims-made coverage - Coverage triggered by report date - Matches policy structure **Early Analysis** - Quick indication of emerging trends - Operational metrics - Cash flow planning **Claims Department Performance** - Report lag analysis - Claims handling efficiency - Staffing requirements ## Advantages 1. Fastest development period 2. Aligns with claims-made coverage 3. Useful for operational analysis 4. Early trend indicators ## Disadvantages 1. Not suitable for occurrence policies 2. Subject to reporting delays 3. Less common in ratemaking 4. Affected by claim reporting changes ## Example ``` Report Year 2024 includes: All losses first reported to insurer in 2024: - Accident date: Any year (could be 2020-2024) - Report date: 2024 ← Determines classification - Policy effective: Any year Specific example: - Policy effective: 6/1/2023 - Loss occurrence: 11/15/2023 - Report date: 2/1/2024 ← Report Year 2024 - Initial payment: 3/1/2024 ``` ## Relationship to Claims-Made For claims-made policies: - Report year organization is natural - Coverage based on when claim is reported - Premium earned matches reporting period For occurrence policies: - Report year less useful - Accident year preferred - Reporting delays create mismatches ## Report Lag Analysis **Report Lag** = Report Date - Occurrence Date Analysis includes: - Average report lag by coverage - Distribution of report lags - Changes in reporting patterns - Impact of claims processes ## Related Concepts - [[Ratemaking Data Organization]] - [[Accident Year]] - [[Claims-Made Coverage]] - [[Occurrence Coverage]] ## References - Werner & Modlin, Chapter 3