# ultimateClaims

Compute projected ultimate claims for `capeCod` object

Since R2021a

## Syntax

``projectedUltimateClaims = ultimateClaims(cc)``

## Description

example

````projectedUltimateClaims = ultimateClaims(cc)` computes the projected ultimate claims for each origin period, based on the earned premium and the selected claims ratios for a `capeCod` object.```

## Examples

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This example shows how to compute the projected ultimate claims for a `capeCod` object for simulated insurance claims data.

```load InsuranceClaimsData.mat; head(data)```
``` OriginYear DevelopmentYear ReportedClaims PaidClaims __________ _______________ ______________ __________ 2010 12 3995.7 1893.9 2010 24 4635 3371.2 2010 36 4866.8 4079.1 2010 48 4964.1 4487 2010 60 5013.7 4711.4 2010 72 5038.8 4805.6 2010 84 5059 4853.7 2010 96 5074.1 4877.9 ```

Use `developmentTriangle` to convert the data to a development triangle, which is the standard form for representing claims data. Create two `developmentTriangle` objects, one for reported claims and one for paid claims.

`dT_reported = developmentTriangle(data,'Origin','OriginYear','Development','DevelopmentYear','Claims','ReportedClaims')`
```dT_reported = developmentTriangle with properties: Origin: {10x1 cell} Development: {10x1 cell} Claims: [10x10 double] LatestDiagonal: [10x1 double] Description: "" TailFactor: 1 CumulativeDevelopmentFactors: [1.3069 1.1107 1.0516 1.0261 1.0152 1.0098 1.0060 1.0030 1.0010 1] SelectedLinkRatio: [1.1767 1.0563 1.0249 1.0107 1.0054 1.0038 1.0030 1.0020 1.0010] ```
`dT_paid = developmentTriangle(data,'Origin','OriginYear','Development','DevelopmentYear','Claims','PaidClaims')`
```dT_paid = developmentTriangle with properties: Origin: {10x1 cell} Development: {10x1 cell} Claims: [10x10 double] LatestDiagonal: [10x1 double] Description: "" TailFactor: 1 CumulativeDevelopmentFactors: [2.4388 1.4070 1.1799 1.0810 1.0378 1.0178 1.0080 1.0030 1.0010 1] SelectedLinkRatio: [1.7333 1.1925 1.0914 1.0417 1.0196 1.0097 1.0050 1.0020 1.0010] ```

Create a `capeCod` object where the first input argument is the reported development triangle, the second input argument is the paid development triangle, and the third input is the earned premium.

```earnedPremium = [17000; 18000; 10000; 19000; 16000; 10000; 11000; 10000; 14000; 10000]; cc = capeCod(dT_reported, dT_paid,earnedPremium)```
```cc = capeCod with properties: ReportedTriangle: [1x1 developmentTriangle] PaidTriangle: [1x1 developmentTriangle] EarnedPremium: [10x1 double] UsedUpPremium: [10x1 double] EstimatedClaimRatios: [10x1 double] ExpectedClaimRatio: 0.4258 EstimatedExpectedClaims: [10x1 double] PercentUnreported: [10x1 double] CaseOutstanding: [10x1 double] ```

Use `ultimateClaims` to compute the projected ultimate claims.

`projectedUltimateClaims = ultimateClaims(cc)`
```projectedUltimateClaims = 10×1 103 × 5.0894 5.1876 5.6382 5.8520 5.9447 5.8367 5.8332 6.0632 6.0893 5.9459 ```

## Input Arguments

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Cape Cod object, specified as a previously created `capeCod` object.

Data Types: `object`

## Output Arguments

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Projected ultimate claims obtained using the Cape Cod technique, returned as a vector.

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### Ultimate Claims

Ultimate claims are the total sum the insured, its insurer, and/or its reinsurer pay for a fully developed loss. A fully developed loss is the paid losses plus outstanding reported losses and incurred-but-not-reported (IBNR) losses.

Knowing the exact value of ultimate losses might not be possible for a long time after the end of a policy period. Actuaries assist with these projections for purposes of financial modeling and year-end reserve determinations.

## Version History

Introduced in R2021a