CAS Exam 5 Fall 2015, Question 15

Study guide: Exam 5

Part a (0.75 points)

List three considerations when establishing a large claim threshold for the purpose of estimating unpaid claims.

Part b (0.5 points)

Contrast the effect that large claims have on the development technique and the Bornhuetter-Ferguson technique for estimation of unpaid claims.

Answer this question and see the worked solution

Concepts tested

• Large Loss
• Unpaid Claims
• Credibility
• Line of Business
• Chain Ladder Method
• Bornhuetter-Ferguson Method

More questions from this set

• CAS Exam 5 Fall 2015, Question 14
• CAS Exam 5 Fall 2015, Question 16