Loss Triangle

Loss Triangle,

Loss Triangle Definition:

Loss Triangle definition is: A loss table that shows the total losses over a certain period of time on certain regular price dates and reflects a change in value when the claim expires. The oldest period of the table has another entry compared to the next recent period, which leads to triangular figures in the table. It can show the losses paid or the total losses incurred. The loss triangle can be used to determine the evolution of losses for a particular risk.

A loss triangle is a graph that lists losses by line and year. Shows the value of each series of annual losses over the next 12 months.

Literal Meanings of Loss Triangle

Loss:

Meanings of Loss:
  1. The fact or action of losing someone else.

Sentences of Loss
  1. Don't waste your time

Synonyms of Loss

mislaying, forgetting, overlooking, dropping, misplacement

Triangle:

Meanings of Triangle:
  1. A flat figure with three right sides and three corners.

Sentences of Triangle
  1. One sided triangle

Synonyms of Triangle

slice, triangle, tapered piece, section, segment

Loss Triangle,

Loss Triangle:

A simple definition of Loss Triangle is: Date of claims with information of losses incurred in the reference year and periodic losses until the settlement of the claim. The loss date is shown at the top of the table and each new line is used as the loss amount for the new year. Triangles can also be formed based on the duties performed.