Since knowing future losses precisely could not be possible, insurers should allocate an adequate reserve in the loss process. For this purpose, insurers need to select a suitable reserving method which estimates the expected liabilities as truely as possible. Estimation of unpaid losses and allocating the reserve to compensate these losses are the most significant responsibilities of the insurer. Profit of the companies does not only depend on the paid losses, but also the estimation of the future losses.

In this study, we aim to estimate total reserves and loss reserves for each accident year using several loss reserving methods and also to choose the suitable method by taking into account different criteria such as unbiasedness, minimum mean square error etc.

Keywords: Simulation, Loss Development Triangle, Loss Reserve, Performance Tests, Stochastic Models.