accident year data
A method of arranging loss and exposure data of an insurer,
group of insurers, or within a book of business, so that all losses associated
with accidents occurring within a given calendar year and all premium earned
during that same calendar year are compared. Thus, regardless of individual
policy periods and regardless of when a loss is reported or is paid, accident
year data 2007 will include all premiums earned during 2004 and will also include
all losses occurring in 2007. Rate-making organizations use both accident year
data and policy year data in their analyses of rate adequacy. For example, workers
compensation loss development factors promulgated by NCCI are developed from
accident year data.
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