CAS Exam 5 Spring 2019, Question 3

Study guide: Exam 5

Part a (0.5 points)

Briefly describe one advantage and one disadvantage of calendar year data aggregation.

Part b (0.5 points)

Justify an appropriate data aggregation approach for a risk classification plan for a long-tailed line of business.

Part c (0.5 points)

Justify using report year data aggregation for a claims-made line of business.

Answer this question and see the worked solution

Concepts tested

• Ratemaking Data Organization
• Calendar Year
• Report Year
• Claims Made Coverage
• Accident Year

More questions from this set

• CAS Exam 5 Spring 2019, Question 2
• CAS Exam 5 Spring 2019, Question 4