Actuarial Notes

CAS Exam 5 Fall 2014, Question 14

Study guide: Exam 5

Given the following information:

Claim ID Accident Date Report Date 2011 Cal.Yr. Paid 2011 Ending Case O/S 2012 Cal.Yr. Paid 2012 Ending Case O/S 2013 Cal.Yr. Paid 2013 Ending Case O/S
1 March 3, 2011 July 1, 2011 260 0 0 0 0 0
2 September 18, 2011 October 2, 2011 200 500 0 500 230 270
3 December 1, 2011 February 15, 2012 620 0 0 0
4 March 1, 2012 April 1, 2012 200 200 400 0
5 June 15, 2012 September 9, 2012 460 0 0 0
6 September 30, 2012 October 20, 2012 0 400 700 400
7 December 12, 2012 March 11, 2013 300 230
8 April 12, 2013 June 18, 2013 400 200
9 May 28, 2013 July 23, 2013 600 300
10 November 12, 2013 December 5, 2013 100
11 October 30, 2013 January 31, 2014
  • Reported claims are closed when case outstanding equals 0.

Part a (2 points)

Create the following cumulative annual triangles organized by accident year:

i. paid claims

ii. reported claims

iii. reported claim count

iv. closed claim count

Part b (1 point)

Use the triangles produced in part a. above to generate one additional triangle to show that an operational change took place during the experience period. Identify and briefly describe an operational change consistent with the data.

Answer this question and see the worked solution

Concepts tested

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