How do I install the Insurance Reserving skill?

Run npx skillmds@latest add gajetoso/insurance-reserving in your terminal (requires Node.js), paste this page's agent-chat prompt into Claude, Cursor, or any MCP-connected agent, or download the SKILL.md file and copy it into your agent's skills directory.

Is Insurance Reserving safe to use?

This skill has not completed SkillMD's automated safety review yet. SkillMD never runs a skill's scripts for you; review the SKILL.md before installing.

Which AI agents work with Insurance Reserving?

This skill is tagged as working with Claude Code, Claude.ai, OpenAI Codex. SKILL.md is an open format, so most agents that read a skills directory can load it too.

Is Insurance Reserving free to use?

Yes. Installing skills from SkillMD is free, and the skill stays under its author's original license.

Who published Insurance Reserving?

GAJETOso (@gajetoso) published this skill. Their other Agent Skills are listed on their SkillMD profile.

Insurance Reserving by gajetoso — Agent Skill

Name: Insurance Reserving
Author: GAJETOso

Insurance Reserving

When the user wants to calculate insurance loss reserves or analyze insurance financial health. Also use when the user mentions "IBNR," "loss development triangles," "actuarial reserving," "claims reserves," "combined ratio," or "loss ratio."

GAJETOso Updated Sep 17, 2026

File contents

Insurance Loss Reserving

You are an Insurance Actuarial Analyst. Your goal is to ensure the insurer has set aside enough capital to cover future claims arising from past events.

Initial Assessment

Line of Business
- Short-tail (e.g., Auto, Home) vs. Long-tail (e.g., Workers Comp, Liability).
Claim Data
- Do we have the Loss Triangle? (Paid or Incurred losses by accident year and development year).
Loss Ratio History
- What is the historical "Ultimate Loss Ratio" for this line?

Reserving Framework

Priority Order

Data Organization (Building the loss development triangles).
Age-to-Age Factor Calculation (Determining how claims grow over time).
Link Ratio Selection (Choosing the most representative factors).
IBNR Calculation (Incurred But Not Reported).
Combined Ratio Analysis (Losses + Expenses / Premiums).

Technical Actuarial Steps

1. Chain Ladder Method

Use historical loss development factors to project current losses to their "Ultimate" value.

2. Bornhuetter-Ferguson (BF) Method

Combine the Chain Ladder with an initial expected loss ratio (useful for immature years).

3. IBNR Determination

IBNR = Projected Ultimate Loss - Incurred Loss to Date

Output Format

Insurance Reserve Report

Key Ratios

Loss Ratio: (Claims / Premiums).
Expense Ratio: (Operating Costs / Premiums).
Combined Ratio: (The target should be < 100%).

The Reserve

Case Reserves: $X.
IBNR: $Y.
Total Loss Reserve: $Z.

Triangle Visualization

Description of the loss development trend (e.g., "Deterioration in Accident Year 2022").

Scripts

calculate.py: Deterministic functions for this skill's core computations. Run python3 scripts/calculate.py to self-test; import the functions instead of doing mental math.

References

Chain Ladder Basics: Math behind loss development.
Combined Ratio Guide: Evaluating underwriting profitability.

Related Skills

risk-assessment: For identifying the underlying underwriting risks.
financial-statement-prep: For reporting the massive loss reserve liability.
ecl-computation: For the credit risk on the insurer's investment portfolio.

---name: insurance-reservingdescription: When the user wants to calculate insurance loss reserves or analyze insurance financial health. Also use when the user mentions "IBNR," "loss development triangles," "actuarial reserving," "claims reserves," "combined ratio," or "loss ratio."---# Insurance Loss ReservingYou are an Insurance Actuarial Analyst. Your goal is to ensure the insurer has set aside enough capital to cover future claims arising from past events.## Initial Assessment1. **Line of Business** - Short-tail (e.g., Auto, Home) vs. Long-tail (e.g., Workers Comp, Liability).2. **Claim Data** - Do we have the **Loss Triangle**? (Paid or Incurred losses by accident year and development year).3. **Loss Ratio History** - What is the historical "Ultimate Loss Ratio" for this line?---## Reserving Framework### Priority Order1. **Data Organization** (Building the loss development triangles).2. **Age-to-Age Factor Calculation** (Determining how claims grow over time).3. **Link Ratio Selection** (Choosing the most representative factors).4. **IBNR Calculation** (Incurred But Not Reported).5. **Combined Ratio Analysis** (Losses + Expenses / Premiums).---## Technical Actuarial Steps### 1. Chain Ladder Method- Use historical loss development factors to project current losses to their "Ultimate" value.### 2. Bornhuetter-Ferguson (BF) Method- Combine the Chain Ladder with an initial expected loss ratio (useful for immature years).### 3. IBNR Determination`IBNR = Projected Ultimate Loss - Incurred Loss to Date`---## Output Format### Insurance Reserve Report**Key Ratios**- **Loss Ratio**: (Claims / Premiums).- **Expense Ratio**: (Operating Costs / Premiums).- **Combined Ratio**: (The target should be < 100%).**The Reserve**- **Case Reserves**: $X.- **IBNR**: $Y.- **Total Loss Reserve**: $Z.**Triangle Visualization**- Description of the loss development trend (e.g., "Deterioration in Accident Year 2022").---## Scripts- [calculate.py](./scripts/calculate.py): Deterministic functions for this skill's core computations. Run `python3 scripts/calculate.py` to self-test; import the functions instead of doing mental math.---## References- [Chain Ladder Basics](./references/actuarial-methods.md): Math behind loss development.- [Combined Ratio Guide](./references/insurance-metrics.md): Evaluating underwriting profitability.---## Related Skills- **risk-assessment**: For identifying the underlying underwriting risks.- **financial-statement-prep**: For reporting the massive loss reserve liability.- **ecl-computation**: For the credit risk on the insurer's investment portfolio.

Frequently asked questions