trend factor
A trend factor is used in the loss forecasting process that accounts for increases over time in the dollar amount of losses sustained by an organization.
trend factor
A trend factor is used in the loss forecasting process that accounts for increases over time in the dollar amount of losses sustained by an organization.
Additional Information
Trend factors are applied to convert historical loss data to current dollars. For example, the Consumer Price Index and the US Claims Cost Indexes are sometimes applied to past losses for this purpose.
Synonyms
loss development factor
