CAS Exam 5 Fall 2017, Question 25
Study guide: Exam 5
The following information is available for an insurer as of December 31, 2016:
| Accident Year | Cumulative Gross Reported Claims ($000) as of 12 months | 24 | 36 | 48 |
|---|---|---|---|---|
| 2013 | 2,757 | 5,570 | 6,880 | 7,047 |
| 2014 | 2,345 | 4,104 | 5,121 | |
| 2015 | 2,639 | 4,677 | ||
| 2016 | 2,802 |
| Accident Year | Cumulative Reported Claims ($000) Ceded to Excess of Loss Treaty as of 12 months | 24 | 36 | 48 |
|---|---|---|---|---|
| 2013 | 0 | 745 | 1,332 | 1,332 |
| 2014 | 0 | 0 | 402 | |
| 2015 | 154 | 328 | ||
| 2016 | 0 |
| Accident Year | Cumulative Paid Claims ($000) Net of Excess of Loss Treaty |
|---|---|
| 2013 | 5,102 |
| 2014 | 3,834 |
| 2015 | 2,840 |
| 2016 | 1,385 |
- There is no reported claims development beyond 48 months.
- For each of accident years 2013 through 2015, the insurer maintained a stop loss reinsurance limit that applies after an excess of loss treaty.
- The stop loss limits are:
| Accident Year | Stop Loss Limit ($000) |
|---|---|
| 2013 | 5,000 |
| 2014 | 5,000 |
| 2015 | 5,000 |
| 2016 | None |
Calculate the unpaid claims net of all reinsurance for all accident years using the reported claims development technique.
Part a (2 points)
Answer this question and see the worked solution