CAS Exam 5 Spring 2016, Question 21

Study guide: Exam 5

Given the following information:

Cumulative Paid Claims ($) as of (months):

Accident Year	12	24	36
2013	5,500	5,800	6,000
2014	4,800	5,500
2015	3,600

Cumulative Reported Claims ($) as of (months):

Accident Year	12	24	36
2013	6,000	6,300	6,000
2014	5,400	6,200
2015	4,150

Open Claim Counts as of (months):

Accident Year	12	24	36
2013	25	15	15
2014	30	15
2015	15

Part a (1.25 points)

Create two diagnostic triangles and discuss whether there have been any changes in case reserve adequacy.

Recommend and briefly justify an appropriate technique to determine ultimate claims based on the conclusion in part a. above.