Loss Forecasting, Budgeting and Cost Allocations

Loss forecasts (sometimes called budgets) are estimates of the future costs of an organization’s risk management program. In a self-insured context, a forecast most often represents an estimate of the retained loss in the upcoming policy year. The main difference between loss reserve estimates and forecasts is that loss reserves are retrospective whereas forecasts are prospective.

In addition to providing expert forecasts at various retentions, Archer can help your organization allocate insurance costs to individual business units efficiently and equitably.