CAS Exam 5 Spring 2017, Question 22
Study guide: Exam 5
Given the following data as of December 31, 2016:
Cumulative Closed Claim Counts as of (months)
| Accident Year | 12 | 24 | 34 (as printed) | 48 |
|---|---|---|---|---|
| 2013 | 660 | 959 | 1,119 | 1,154 |
| 2014 | 768 | 1,104 | 1,317 | |
| 2015 | 620 | 825 | ||
| 2016 | 806 |
Cumulative Reported Claim Counts as of (months)
| Accident Year | 12 | 24 | 36 | 48 |
|---|---|---|---|---|
| 2013 | 1,100 | 1,155 | 1,178 | 1,178 |
| 2014 | 1,200 | 1,380 | 1,463 | |
| 2015 | 1,000 | 1,100 | ||
| 2016 | 1,300 |
Justify whether the closed claim counts for each accident year at 12 months maturity will be increased, decreased, or not adjusted when applying the Berquist-Sherman technique with paid claim development adjustment.
Part a (2 points)
Answer this question and see the worked solution