CAS Exam 5 Spring 2018, Question 24
Study guide: Exam 5
Given the following information:
| Accident Year | Selected Ultimate Claims as of June 30, 2017 | Reported Claims as of June 30, 2017 | Reported Claims as of December 31, 2017 |
|---|---|---|---|
| 2014 | 3,220 | 3,126 | 3,088 |
| 2015 | 4,229 | 3,248 | 3,796 |
| 2016 | 4,845 | 2,018 | 2,900 |
| 2017 | 5,101 | 697 | 1,565 |
Selected Reported Claims Age-to-Age Factors
| 6-12 | 12-18 | 18-24 | 24-30 | 30-36 | 36-42 | 42-48 | 48-Ult |
|---|---|---|---|---|---|---|---|
| 1.870 | 1.630 | 1.430 | 1.290 | 1.170 | 1.080 | 1.030 | 1.005 |
Part a (1.25 points)
Compare the actual versus expected claims reported between June 30, 2017 and December 31, 2017 for each accident year.
Part b (0.5 points)
Briefly describe two scenarios that would result in reported claims emerging lower than expected.
Part c (0.5 points)
Briefly describe two scenarios that would result in reported claims emerging higher than expected.
Answer this question and see the worked solution