Loss forecasting

{
  "id": "MLC-T-INS-002071",
  "term": "Loss forecasting",
  "field": "Insurance and risk management",
  "definition": "The practice of using historical loss data and statistical methods to project the frequency, severity, and total cost of future losses for a specific risk or portfolio. Insurers and risk managers use these projections to set premiums, establish adequate loss reserves, and make informed decisions about risk retention and transfer. Common forecasting techniques include moving averages, regression analysis, and more complex stochastic modeling to create a loss distribution.",
  "url": "https://mlchart.com/terminology/insurance/loss-forecasting/"
}