Reserve-change metrics
For a benchmark, the values in the following table are calculated by the average-of-averages methodology described in "Overview of Compare."
| Metric | Description |
|---|---|
| Count of Days w/ Reserve Changes | The mean number of days on which reserves changed. Each exposure is reviewed and the results averaged across exposures. Multiple changes on a single day are counted as a single change. This metric might indicate the initial accuracy of reserves, how actively reserves are managed, or both. |
| Days to Initial Reserve | The mean number of days from when exposures were opened until reserves were set.
Each exposure is reviewed and the results averaged. In most cases, a number close to zero indicates automatic reserving, whereas positive numbers indicate manual reserving. Exposures without a set reserve are excluded from this metric. This metric and the next two give the user a sense of the cycle's shape and to what extent exposures remain open for a long time. |
| Days to 2nd Reserve | The mean number of days from when exposures were opened until set reserves were changed. Exposures with no second reserve are excluded from this metric.
When the company uses auto-reserving, this metric is a proxy for the first manual review or first manual alteration of reserves. |
| To 3rd Reserve | The mean number of days from when exposures were opened until the reserves were changed a second time. Exposures with no third reserve are excluded from this metric. |
| Initial Reserve Amount | In U.S. dollars, the mean amount of the initial reserve on the exposure, if an initial reserve exists. The metric excludes exposures that closed without a reserve.
This metric gives insight into initial reserve practices and might reflect the effect of automatic reserving. |
| 2nd Reserve Amount | In U.S. dollars, the mean amount of the second reserve on the exposure, if a second reserve exists. The metric excludes exposures that closed without a second reserve.
This metric gives insight into second-reserve trends and can be compared to first-reserve amounts. |
| 3rd Reserve Amount | In U.S. dollars, the mean amount of the third reserve on the exposure, if a third reserve exists. The metric excludes exposures that closed without a third reserve.
This metric gives insight into third-reserve trends and can be compared to first- and second-reserve amounts. |