CAS Exam 5 Fall 2013, Question 21
Study guide: Exam 5
Given the following information:
Cumulative Closed Claim Counts
| Accident Year | 12 Months | 24 Months | 36 Months | 48 Months |
|---|---|---|---|---|
| 2009 | 250 | 400 | 450 | 500 |
| 2010 | 225 | 360 | 405 | |
| 2011 | 250 | 500 | ||
| 2012 | 175 |
Cumulative Paid Claims ($000)
| Accident Year | 12 Months | 24 Months | 36 Months | 48 Months |
|---|---|---|---|---|
| 2009 | $2,000 | $2,800 | $4,340 | $5,425 |
| 2010 | $2,100 | $3,360 | $4,872 | |
| 2011 | $2,000 | $3,750 | ||
| 2012 | $1,600 |
Ultimate Claim Counts
| Accident Year | Ultimate Claim Counts |
|---|---|
| 2009 | 500 |
| 2010 | 450 |
| 2011 | 625 |
| 2012 | 700 |
Assume no further development after 48 months.
Using the Berquist-Sherman paid adjustment to the paid claim development technique, estimate the ultimate claims for accident year 2012 as of December 31, 2012. Use linear interpolation to calculate adjusted paid claims.
Part a (2.75 points)
Answer this question and see the worked solution