CAS Exam 5 Fall 2013, Question 17
Study guide: Exam 5
Given the following information:
| Accident Year | Earned Premium | Expected Claim Ratio | Reported Claims | Reported CDF to Ultimate |
|---|---|---|---|---|
| 2010 | $19,800 | 50% | $6,900 | 1.400 |
| 2011 | $18,900 | 50% | $5,800 | 1.700 |
| 2012 | $21,200 | 50% | $3,200 | 3.100 |
Part a (1.75 points)
Estimate the unpaid claim amount as of December 31, 2012 using the Benktander technique for accident years 2010 through 2012.
Part b (0.25 points)
Estimate the unpaid claim amount as of December 31, 2012 using the Benktander technique with 1,000 iterations for accident year 2012.
Answer this question and see the worked solution