CAS Exam 5 Spring 2017, Question 20
Study guide: Exam 5
Given the following data evaluated as of December 31, 2016:
Cumulative Paid Claims ($000) as of (months)
| Accident Year | 12 | 24 | 36 | 48 |
|---|---|---|---|---|
| 2013 | 300 | 550 | 647 | 700 |
| 2014 | 500 | 979 | Not Provided | |
| 2015 | 400 | 825 | ||
| 2016 | 450 |
Cumulative Reported Claims ($000) as of (months)
| Accident Year | 12 | 24 | 36 | 48 |
|---|---|---|---|---|
| 2013 | 500 | 660 | 700 | 700 |
| 2014 | 750 | 900 | 1,150 | |
| 2015 | 640 | 810 | ||
| 2016 | 700 |
- There is no development on paid or reported claims after 48 months.
- The reported claim development technique projects IBNR that is $50,000 lower than the IBNR projected by the paid claim development technique for accident year 2016.
- Age-to-age development factors are selected using an all year simple average.
Calculate the total claims paid in calendar year 2016 for all accident years.
Part a (2.25 points)
Answer this question and see the worked solution