How are claims allocated when monitored on a calendar year basis?

Claims allocated on a calendar year basis are based on the date of loss. This approach ensures that claims are tracked and categorized according to when the loss actually occurred. By using the date of loss as the reference point, insurers can accurately assess and manage their financial reserves and understand their claims experience for the year. This method also facilitates better performance monitoring over specific periods, helping to align claims with the correct underwriting year.

The other options do not accurately represent the way claims are allocated when monitored on a calendar year basis. For example, proportionately allocating based on the time of year could lead to inaccuracies since not all claims fall evenly over the year. Relating claims to unearned premium income does not directly correlate with claims management and could mislead the assessment of claims experience. Lastly, allocating claims to the next full year starting 1 January fails to recognize the actual date of loss, which is crucial for accurate accounting and claims management.