What does Loss Triangle mean? Read on to discover the definition & meaning of the term Loss Triangle - to help you better understand the language used in insurance policies.
A table of loss experience showing total losses for a certain period at various, regular valuation dates, reflecting the change in amounts as claims mature. Older periods in the table will have one more entry than the next youngest period, leading to the triangle shape of the data in the table. Can show paid losses or total incurred losses. Loss triangles can be used to determine loss development for a given risk.
We hope the you have a better understanding of the meaning of Loss Triangle.