Question

What approach is taken for larger and more complex claims?

a.

Estimates are based solely on historical data

b.

Estimates are input directly by clients

c.

Estimates are made using subjective judgment of experienced handlers

d.

Estimates are determined by complex mathematical models

Posted under IC 14 Regulations of Insurance Business

Answer: (c).Estimates are made using subjective judgment of experienced handlers Explanation:For larger and more complex claims, estimates are made using the subjective judgment of experienced handlers. These handlers assess the circumstances of the claims and draw on their expertise to make a subjective judgment on the estimate, taking into account various factors that may impact the final cost of the claim.

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Q. What approach is taken for larger and more complex claims?
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