CAS Exam 5 Fall 2015, Question 23
Study guide: Exam 5
An insurer has business reinsured through an excess of loss reinsurance arrangement and a stop loss limit reinsurance arrangement.
| Policy Year | Gross Ultimate Claims Estimate ($000) | Net of Excess of Loss Reinsurance — Net Ultimate Claims Estimate ($000) | Net of Excess of Loss Reinsurance — Claims as of December 31, 2014: Reported ($000) | Net of Excess of Loss Reinsurance — Claims as of December 31, 2014: Paid ($000) | Stop Loss Limit ($000) |
|---|---|---|---|---|---|
| 2012 | 1,650 | 1,475 | 1,450 | 1,200 | 1,500 |
| 2013 | 1,800 | 1,750 | 1,600 | 1,200 | 1,500 |
| 2014 | 2,000 | 1,900 | 1,400 | 1,000 | 1,500 |
Part a (0.75 points)
Calculate the IBNR for policy years 2012 through 2014 net of all reinsurance.
Part b (0.5 points)
Calculate the unpaid claims for policy years 2012 through 2014 net of all reinsurance.
Answer this question and see the worked solution