CAS Exam 5 Fall 2014, Question 21
Study guide: Exam 5
Given the following information for an insurance company:
Gross Cumulative Reported Claims ($000)
| Accident Year | 12 Months | 24 Months | 36 Months | 48 Months |
|---|---|---|---|---|
| 2010 | 3,500 | 8,120 | 12,180 | 14,616 |
| 2011 | 3,000 | 6,840 | 10,465 | |
| 2012 | 3,300 | 7,656 | ||
| 2013 | 3,250 |
Net Cumulative Reported Claims ($000)
| Accident Year | 12 Months | 24 Months | 36 Months | 48 Months |
|---|---|---|---|---|
| 2010 | 2,275 | 5,278 | 7,917 | 9,500 |
| 2011 | 2,100 | 4,788 | 7,326 | |
| 2012 | 2,475 | 5,742 | ||
| 2013 | 2,600 |
- Assume no further development after 48 months.
Part a (0.5 points)
Using the data, determine the structure of the company's reinsurance program.
Part b (1.5 points)
Estimate the ceded IBNR for accident year 2013.
Answer this question and see the worked solution