CAS Exam 5 Fall 2018, Question 21
Study guide: Exam 5
Given the following as of December 31, 2017:
Cumulative Received Salvage and Subrogation (S&S) ($000) as of (months)
| Accident Year | 12 | 24 | 36 | 48 |
|---|---|---|---|---|
| 2014 | 4,700 | 7,000 | 7,200 | 7,300 |
| 2015 | 4,300 | 6,600 | 6,800 | |
| 2016 | 4,300 | 6,800 | ||
| 2017 | 4,900 |
Cumulative Paid Claims Gross of S&S ($000) as of (months)
| Accident Year | 12 | 24 | 36 | 48 |
|---|---|---|---|---|
| 2014 | 13,500 | 16,800 | 16,800 | 16,800 |
| 2015 | 13,300 | 16,900 | 16,900 | |
| 2016 | 13,200 | 16,800 | ||
| 2017 | 12,900 |
| Accident Year | Selected Ultimate Claims Gross of S&S ($000) |
|---|---|
| 2014 | 16,800 |
| 2015 | 16,900 |
| 2016 | 16,800 |
| 2017 | 16,400 |
- There is no development beyond 48 months.
Part a (1.5 points)
Estimate ultimate salvage and subrogation for accident year 2017 using a ratio approach.
Answer this question and see the worked solution