CAS Exam 5 Spring 2015, Question 23
Study guide: Exam 5
An insurance company recently implemented a new initiative to prioritize the settlement of smaller claims. This initiative has resulted in faster settlement of smaller claims.
Part a (1 point)
Discuss why it may not be appropriate for this company to use the following techniques to estimate ultimate claims:
i. Paid Development Technique ii. Reported Development Technique
Part b (0.5 points)
Discuss how to adjust one of the development techniques above to make it appropriate for this company.
Answer this question and see the worked solution