CAS Exam 5 Spring 2013, Question 17
Study guide: Exam 5
The following information is available for a self-insured entity:
| Accident Year | Case Outstanding | Industry Reported CDF to Ultimate | Industry Paid CDF to Ultimate |
|---|---|---|---|
| 2010 | $30 | 1.005 | 1.105 |
| 2011 | $60 | 1.035 | 1.235 |
| 2012 | $110 | 1.120 | 1.560 |
Part a (0.5 points)
Using a case outstanding development technique, estimate the unpaid claims for accident year 2012 as of December 31, 2012.
Part b (0.5 points)
Identify two limitations to the technique used in part a. above.
Part c (0.25 points)
Briefly describe a situation when this technique is particularly useful.
Answer this question and see the worked solution
Concepts tested
- Loss Development
- Self-Insured Retention
- Loss Reserving
- Case Outstanding Development Method
- External Information in Reserving