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
- Reserving Data Organization
- Reserve Adequacy
- Accident Year
- Development Triangle
- Data Diagnostic Analysis