Estimation of Outstanding Claims Reserves of Turkish Insurance Companies Using Chain Ladder Method

Estimating the outstanding claims and funding appropriate reserves are among the most important obligations of insurance companies in order to compensate any possible damages. Outstanding claim reserves are calculated with potential estimations based on the historical data obtained from an insurance company. The estimation of outstanding claim payments is significant with regards to maintaining the financial balance of insurance companies. Literature covers several reserve methods and Chain Ladder method is the most commonly used and recognized method among them. This study aims to estimate the outstanding claim reserves using the Chain Ladder method on the claims payments of insurance companies operating in Turkey for a period between 2009 and 2014.