CAS Exam 5 Spring 2016, Question 19
Study guide: Exam 5
Discuss whether a frequency-severity technique is appropriate to estimate ultimate claims for the following:
Part a (0.5 points)
A very long-tailed line of business.
Part b (0.5 points)
A line of business with a significant proportion of reopened claims.
Part c (0.5 points)
A line of business with a recent increase in high severity claims during the experience period.
Part d (0.5 points)
A line of business that has experienced changes in case reserving philosophy during the experience period.
Answer this question and see the worked solution
Concepts tested
- Frequency-Severity Method
- Line of Business
- Development Factor
- Reserve Adequacy
- Long Tail Lines
- Case Adequacy
- Claims Coding Changes