As-if restating
Actuarial technique restating historical claims as if they had occurred under current price and exposure conditions.
A 2019 motor claim settled at 18,000 euros does not carry its true weight in a burning cost computed in 2024: with a claims trend of 6% a year, it would be worth about 24,100 today. As-if restating redoes that calculation across the whole history, bringing past claims to current cost, exchange rate, exposure or coverage conditions. In pricing, a claims inflation trend is applied to past data to make different accident years comparable. In reinsurance, it simulates what the current program would have cost if past losses had occurred today, under current limits and retentions. Without this step, there is no representative burning cost once the experience has gone through inflation or a change in portfolio structure. The oldest years, left at historical value, always understate current cost.
2019 motor claim paid 18,000 EUR, claims inflation trend +6%/year. 2024 as-if value: 18,000 × 1.06^5 ≈ 24,100 EUR, amount used in current burning cost calculation.
as-if, as-if adjustment, on-levelling, loss restating
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