Application of Generalized Estimating Equations to Non-Life Insurance Claims Reserve in Ghana -A Case Study

  • Kofi Agyarko University of Mines and Technology, Tarkwa, Ghana.
  • Sampson Takyi Appiah University of Mines and Technology, Tarkwa, Ghana
  • Anthony Simons University of Mines and Technology, Tarkwa, Ghana
Keywords: Reserve, Accident Years, Chain Ladder Method, Generalised Estimating Equation.


Claim reserves often take greater percentage of the liabilities of non-life insurance. The chain ladder method is the most widely used method for estimating these reserves though this method omits the possible existence of correlation within accident years. In Ghana, it is difficult to determine which methods are used in estimating claims reserve as almost all insurance companies are adamant to give any information on claims reserve. In this paper the Generalised Estimating Equation (GEE) framework is used to estimate claims reserve using data from SIC insurance company (Bolgatanga Branch) in Ghana. GEE allows for the incorporation of dependencies within accident years. The Quasi-Likelihood Information Criterion (QIC) and Correlation Information Criterion (CIC) were used as the criteria for model comparison and selection. The results show that the canonical Chain Ladder method and the GEE techniques can be used in Ghana to estimate insurance claims reserve. However, the GEE technique provides better estimate than the canonical Chain Ladder method.


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