CAS Exam 5 Fall 2018, Question 19
Study guide: Exam 5
One year ago, an automobile insurer implemented a mobile claims reporting platform. The company anticipated that this would lead to shorter reporting patterns.
Since the mobile platform was implemented, the company has identified a shift in mix of business towards younger drivers, with younger drivers having a higher loss cost than older drivers.
Part a (1.5 points)
Evaluate the effect on the IBNR estimated using each of the following techniques if no adjustments are made:
i. Development Technique ii. Expected Claims Technique iii. Cape Cod Technique
Answer this question and see the worked solution
Concepts tested
- Loss Reserving
- IBNR
- Loss Development
- Expected Loss Method
- Cape Cod Method
- Mix of Business
- Changing Conditions