Actuarial Notes

CAS Exam 5 Spring 2015, Question 15

Study guide: Exam 5

The following table shows all claims transactions for an insurance company through December 31, 2014.

Claim ID Accident Date Report Date Transaction Date Incremental Payment Ending Case Reserves
1 January 1, 2011 January 1, 2011 January 31, 2011 100 100
1 March 2, 2011 100 50
1 April 1, 2011 25 0
2 June 30, 2011 March 15, 2012 June 30, 2012 0 10,000
2 May 25, 2013 250 10,000
2 June 30, 2014 15,000 1,000
2 September 12, 2014 200 0
3 February 25, 2012 March 15, 2012 March 15, 2012 0 0
3 January 15, 2013 0 1,000
3 July 15, 2013 2,500 0
  • All three claims are closed as of December 31, 2014.

Part a (0.75 points)

Construct the cumulative reported claims triangle on an accident year basis.

Part b (0.75 points)

Construct the cumulative reported claims triangle on a report year basis.

Answer this question and see the worked solution

Concepts tested

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