Empirical Analysis of Claims Development Trapezoids following Benford’s Law

Jochen Heberle, Tobias Gummersbach

Article ID: 420
Vol 3, Issue 1, 2020

VIEWS - 6163 (Abstract)

Abstract


In this paper we make an empirical analysis of a wide range of claims development trapezoids following Benford’s law. In particular we determine Benfors’s law for different characteristic factors depending on claims development triangles/trapezoids. These characteristic factors are the cumulative claims payments, the incremental claims payments and the individual development factors. For each characteristic factor hypothesis testing is done for verifying/rejecting Benford’s law.


Keywords


Benford-Law; Claims Reserving; Run-off Triangle/Trapezoid; Fraud Detection

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DOI: https://doi.org/10.24294/fsj.v3i1.420

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Copyright (c) 2020 Jochen Heberle, Tobias Gummersbach

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