CAS Exam 5 Spring 2017, Question 18
Study guide: Exam 5
Given the following information as of December 31, 2016:
Cumulative Reported Claims as of (months)
| Accident Year | 12 | 24 | 36 | 48 |
|---|---|---|---|---|
| 2013 | 1,000 | 1,350 | 1,450 | 1,480 |
| 2014 | 4,500 | 6,000 | 6,400 | |
| 2015 | 4,800 | 6,350 | ||
| 2016 | 4,100 |
Reported Claims Age-to-Age Factors
| Accident Year | 12-24 | 24-36 | 36-48 |
|---|---|---|---|
| 2013 | 1.350 | 1.074 | 1.021 |
| 2014 | 1.333 | 1.067 | |
| 2015 | 1.323 |
Earned Premium
| Accident Year | Earned Premium |
|---|---|
| 2013 | 1,500 |
| 2014 | 6,800 |
| 2015 | 7,200 |
| 2016 | 7,500 |
- Accident year 2016 paid claims as of December 31, 2016 = 2,775.
- Expected claim ratio for all years = 75%.
- There is no reported claims development after 48 months.
Part a (0.75 points)
Calculate the IBNR and the total unpaid claims for accident year 2016 as of December 31, 2016 using the expected claims technique.
Part b (1.25 points)
Calculate the IBNR and the total unpaid claims for accident year 2016 as of December 31, 2016 using the reported Bornhuetter-Ferguson technique.
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