Final answer:
The statement is true as loss development is a method used in the insurance industry to calculate future reserves needed for future claim payments by analyzing and adjusting past claim data.
Step-by-step explanation:
Loss development is indeed one type of calculation of future reserves, so the correct answer is a) True. Loss development factors are used by insurers to adjust initial loss estimates to predict what the ultimate losses will be. This process is crucial in the insurance industry as it helps in determining the necessary reserve amounts for future claim payments, which are essentially funds that insurers must set aside to pay for incurred but not yet reported (IBNR) or not enough reserved (IBNER) claims. Calculating future reserves through loss development involves analyzing past data on claim settlements and adjusting for inflation, changes in legal environment, or other factors that might affect the payment amount or timing.