CAS Exam 5 Fall 2014, Question 18
Study guide: Exam 5
Given the following data as of December 31, 2013:
| Accident Year | On-level Earned Premium | Reported Claims | Reported Development Factor to Ultimate | Expected Claims Ratio |
|---|---|---|---|---|
| 2010 | 25,000 | 11,000 | 1.05 | 57.9% |
| 2011 | 26,000 | 13,000 | 1.10 | 57.9% |
| 2012 | 28,000 | 10,000 | 1.30 | 57.9% |
| 2013 | 30,000 | 12,000 | 1.80 | 57.9% |
Part a (1.25 points)
Calculate the IBNR for accident year 2013 using the Benktander technique.
Part b (0.25 points)
The Benktander technique can be viewed as a credibility weighting of other common techniques. Identify these techniques.
Answer this question and see the worked solution