CAS Exam 5 Fall 2013, Question 3
Study guide: Exam 5
When aggregating data for ratemaking purposes, two of the three general objectives are:
- To accurately match losses and premiums for the policy.
- To use the most recent data available.
Briefly discuss how well the following methods of data aggregation achieve these two general objectives.
Part a (0.5 points)
Calendar year
Part b (0.5 points)
Calendar/accident year
Part c (0.5 points)
Policy year
Answer this question and see the worked solution