accident year data
A method of arranging loss and exposure data of an insurer or
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 2009 will
include all premiums earned during 2009 and will include all losses
occurring in 2009. 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 (LDFs) promulgated
by the National Council on Compensation Insurance (NCCI) are developed
from accident year data.
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