MLchartDataset catalogue

Loss development factor (LDF)

Term · Insurance and risk management · MLC-T-INS-002069

A numerical factor used by actuaries to project the ultimate value of incurred losses from their current reported or paid status. These factors are derived from historical data, showing how claims estimates have matured over time. Applying a loss development factor to a current loss amount provides an estimate of the total amount that will eventually be paid for those claims.

Table 1. Record
IdentifierMLC-T-INS-002069
FieldInsurance and risk management
AbbreviationLDF
Record as JSON 
{
  "id": "MLC-T-INS-002069",
  "term": "Loss development factor (LDF)",
  "field": "Insurance and risk management",
  "definition": "A numerical factor used by actuaries to project the ultimate value of incurred losses from their current reported or paid status. These factors are derived from historical data, showing how claims estimates have matured over time. Applying a loss development factor to a current loss amount provides an estimate of the total amount that will eventually be paid for those claims.",
  "abbreviation": "LDF",
  "url": "https://mlchart.com/terminology/insurance/loss-development-factor-ldf/"
}

Record 2,003 of 3,708 in Insurance and risk management terminology (MLC-0106). Request the full dataset.