GLOSSARY
This Insurance Glossary of Terms is produced and maintained by the National Alliance Research Academy. 
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Loss Development Factor (LDF)

Ratios applied to a current valuation of losses to determine an estimate of ultimate incurred losses. These factors are calculated by comparing the period-to-period changes in values of loss reserves, under the assumption that current losses will be paid according to the same pattern as prior losses at similar states of development. Loss development factors are frequently calculated separately for incurred losses, paid losses, and claims counts.