Question

Briefly but completely define and discuss the concepts of long-tailed losses and correlated losses and how these issues affect estimating losses and pricing in property/casualty insurance.

Answer 1

ANSWER:

Long tailed losses are thoses losses are thoses losses or harms endured which set aside a more drawn out effort for settlement. It frequently happens it the lossses are exceptionally colossal or includes a protracted legal dispute or if the insurance agency wishes to examine on the off chance that any extortion exists in the cases made. By and large these misfortunes are associated with risk than properties. Settlement of such cases for losses occur after prolonged stretch of time since the occasion occurs.

Corresponded losses are those arrangement of misfortunes that happen at the same time because of the occurrence/non-occurring of a similar occasion. The occasion ordinarily is normal state seismic tremor, storm, floods, and so on.

Since the previous is associated with a long strech of time and last with arrangement of occasions, verifcation and part of understanding will be fundamental. In this way Estimating losses and the costs get influenced.

PLEASE UPVOTE.