CAS Exam 5 Fall 2016, Question 27
Study guide: Exam 5
Given the following information:
| Accident Year | Selected Ultimate Claim Counts as of December 31, 2014 | Reported Claim Counts as of December 31, 2014 | Reported Claim Counts as of December 31, 2015 |
|---|---|---|---|
| 2013 | 7,500 | 1,000 | 3,500 |
| 2014 | 8,600 | 600 | 3,400 |
| Maturity | Cumulative Percent of Claim Counts Reported |
|---|---|
| 36 | 55% |
| 24 | 30% |
| 12 | 8% |
Part a (1 point)
Compare actual reported claim count emergence to expected claim count emergence on reported claim counts in calendar year 2015.
Part b (0.75 points)
Briefly describe a potential limitation of the actual vs. expected calculation performed in part a. above and propose an alternative calculation that addresses this limitation.
Answer this question and see the worked solution