The “loss triangle,” or loss-development triangle, is a forecasting instrument utilized by finance departments at each insurer or reinsurer. It’s essential as a result of many insurance coverage claims aren’t one-time occasions: the corporate nonetheless pays month-to-month claims in opposition to a three-year-old incapacity accident, for instance. By displaying how losses develop over time, loss triangles assist an insurer forecast what it could actually anticipate to be paying for outdated claims, so it could actually preserve the legally required degree of reserves.

At NLC Mutual, loss triangles summarize an immense quantity of data: they embrace the claims histories of as much as eight completely different types of insurance coverage from each municipal group throughout every of our 28 member states. We previously employed a specialist to arrange them, utilizing software program written within the Nineteen Eighties. The method was actually gradual, and needed to be double-checked to keep away from errors, however we bought by. Inevitably, although, the specialist retired, and we wanted to search out an alternate.

Use case

However since our shoppers now report their outcomes to us utilizing Domo, we had a chance to rebuild our loss triangles from the bottom up. We used Domo’s Magic ETL and Pivot Desk card, making use of the “as of” and “previous date” capabilities to automate the whole course of.

Our loss tables now run rather more rapidly, and we might be assured that we haven’t launched any errors. As soon as the formatting is about up, it takes care of itself, and modifications are simple to make. Better of all, the studies are lastly working on fashionable working programs, so we gained’t have to fret about obsolescence for a very long time.

Conclusion

Our new loss tables are extra versatile, too: it’s simple to filter the information so we will have a look at particular person date ranges, for instance. As soon as we began utilizing Domo for reporting, nearly everybody who noticed it in operation prompt a brand new option to apply it. It truly is a know-how that transforms a enterprise, even a standard one like ours.