CAS Exam 5 Spring 2017, Question 14
Study guide: Exam 5
Given the following accident year and report year information as of December 31, 2016:
Cumulative Reported Claims ($000) as of (months)
| Accident Year | 12 | 24 | 36 |
|---|---|---|---|
| 2014 | 120 | 200 | 276 |
| 2015 | 120 | 200 | |
| 2016 | 60 |
Incremental Reported Claim Counts as of (months)
| Accident Year | 12 | 24 | 36 |
|---|---|---|---|
| 2014 | 60 | 10 | 3 |
| 2015 | 60 | 10 | |
| 2016 | 60 |
Cumulative Reported Claims ($000) as of (months)
| Report Year | 12 | 24 | 36 |
|---|---|---|---|
| 2014 | 120 | 180 | 240 |
| 2015 | 140 | 210 | |
| 2016 | 86 |
- No claims are reported beyond 36 months.
- Accident year 36-to-ultimate development factor = 1.06.
- No claims occurred prior to January 1, 2014.
Calculate the claims incurred but not yet reported (IBNYR) in total for all years as of December 31, 2016.
Part a (1.75 points)
Answer this question and see the worked solution