Statistical Research of Loss Reserves in the Railway Passengers Insurance

<p class="basic" style="text-indent:0cm"><span lang="EN-US">The process of insurance seems to be a huge part of the economic activity because it is socially important. Every insurance company needs to assess its financial position for both statutory and internal purposes. It is particularly important for Russian insurers because Russian insurance market began to develop quite recently. One of the key objectives of the insurance company&rsquo;s activity is the process of loss reserving.&nbsp;</span><span style="text-indent: 0cm;">The loss reserving procedures appear rather crucial in passenger accident insurance. This type of insurance requires rigorous investigation due to the significant number of transport accidents, the severity of health damage and long delays between the accidents themselves and the settlement of the claims.&nbsp;</span><span style="text-indent: 0cm;">In order to deal with the problem various actuarial and econometric techniques of loss reserving were used on the example of railway passengers insurance portfolio. The results of the application of all the methods were compared and the best loss reserving method was chosen.</span></p>