Definicja weighted average (FS-CM)

Amount for the ULAE reserve that is determined statistically.

This value is determined at the lowest level of detail from historical data, in other words from amounts that have already been paid in periods in the past. The coverage is part of the detail, but no differentiation is made by loss/claim years.

In a second step this amount is aggregated at company code level. Per reserve group it is then possible to estimate the percentage share of such a reserve in the entire company code.