Actuarial Notes

CAS Exam 5 Fall 2016, Question 16

Study guide: Exam 5

Given the following information:

Claim ID Accident Date 2013 Calendar Year Payments 2013 Ending Case O/S 2014 Calendar Year Payments 2014 Ending Case O/S 2015 Calendar Year Payments 2015 Ending Case O/S
1 January 1, 2013 80 150 25 100 100 -
2 June 1, 2013 20 50 25 50 100 -
3 May 1, 2014 100 50 50 50
4 December 15, 2014 50 250 150 100
5 April 1, 2015 50 50

Part a (0.75 points)

Construct an accident year cumulative paid claims triangle.

Part b (0.75 points)

Construct an accident year cumulative reported claims triangle.

Part c (0.5 points)

In 2015 the claims department began paying claims faster without changing the adequacy of case reserves. Produce and briefly discuss a triangle that demonstrates that this action has been successfully executed.

Part d (0.5 points)

Recommend and briefly justify a technique for calculating ultimate claims for this dataset, given the change noted in part c. above.

Answer this question and see the worked solution

Concepts tested

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