Comparative Study of Technical Provisioning Methods in Health Insurance: An Analytical Approach Using the Chain Ladder Method, the Mack Method and Generalized Linear Models

Authors

  • Ayyoub SAOUDI Université Hassan Ier, Faculté d’Economie et de Gestion, LM2CE, Settat, Maroc
  • Ghita Hajraoui Université Hassan Ier, Faculté d’Economie et de Gestion, LM2CE, Settat, Maroc
  • Jamal Zahi Université Hassan Ier, Faculté d’Economie et de Gestion, LM2CE, Settat, Maroc

Keywords:

Health insurance, Chain Ladder, Financial management, Uncertainty, Mack, Generalized Linear Models, Technical reserving

Abstract

This paper presents an in-depth analysis of technical reserving in health insurance, using three different methods: the Chain Ladder method (deterministic), the Mack stochastic method (stochastic) and Generalized Linear Models (GLM). The aim of this study is to compare these methods in terms of forecast accuracy, robustness and ability to consider the uncertainty inherent in health insurance claims. The scientific contribution of this research lies in the proposal of methods for improving technical reserving, thereby improving the financial management of health insurance companies.

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References

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Zhou, J., & Garrido, J. (2009). A loss reserving method based on generalized linear models. Society of Actuaries.

Partrat, P. (2007). Provision technique en assurance non-vie, perspectives actuarielles modernes. Paris: Economica.

Denuit, M., & Charpentier, A. (2005). Mathématiques de l'Assurance Non-Vie. Tome II: Tarification et Provisionnement. Economica.

Thomas, M. (1993). Measuring the variability of chain ladder reserve estimates. Casualty Actuarial Society E-Forum, Spring, Vol. 1, 101-182.

England, P., & Verrall, R. (2001). A Flexible Framework for Stochastic Claims. Casualty Actuarial Society, 1-38.

Bențe, C. C. (2017). Actuarial Estimation Of Technical Reserves In Insurance Companies. Basic Chain Ladder Method. The Annals of the University of Oradea, 227.

Belkacem-Nacer, M., & Latreche, A. (2015). Estimation de l’incertitude du montant de provisions pour sinistre à payer: Modèle de Mack "cas de la SAA". Les Cahiers du CREAD, 112, 85-112.

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Published

2025-02-18

How to Cite

[1]
A. SAOUDI, G. Hajraoui, and J. Zahi, “Comparative Study of Technical Provisioning Methods in Health Insurance: An Analytical Approach Using the Chain Ladder Method, the Mack Method and Generalized Linear Models”, IJCEDS, vol. 4, no. 1, pp. 7–12, Feb. 2025.

Issue

Vol. 4 No. 1 (2025): Vol. 4, No. 1

Section

Articles

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Copyright (c) 2025 Ayyoub SAOUDI, Ghita Hajraoui, Jamal Zahi

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