CAS Exam 5 Fall 2019, Question 21
Study guide: Exam 5
Given the following:
| Reported Claims ($000) — Accident Year |
12 |
24 |
36 |
48 |
| 2015 |
1,100 |
1,650 |
1,675 |
1,680 |
| 2016 |
1,250 |
1,680 |
1,750 |
|
| 2017 |
1,200 |
1,800 |
|
|
| 2018 |
1,500 |
|
|
|
| Reported Claim Counts — Accident Year |
12 |
24 |
36 |
48 |
| 2015 |
108 |
115 |
115 |
115 |
| 2016 |
112 |
120 |
120 |
|
| 2017 |
104 |
110 |
|
|
| 2018 |
106 |
|
|
|
| Paid Claims ($000) — Accident Year |
12 |
24 |
36 |
48 |
| 2015 |
560 |
1,325 |
1,650 |
1,680 |
| 2016 |
650 |
1,350 |
1,720 |
|
| 2017 |
615 |
1,305 |
|
|
| 2018 |
625 |
|
|
|
| Closed Claim Counts — Accident Year |
12 |
24 |
36 |
48 |
| 2015 |
78 |
106 |
114 |
115 |
| 2016 |
80 |
111 |
118 |
|
| 2017 |
75 |
99 |
|
|
| 2018 |
82 |
|
|
|
| Value |
Item |
| 5.0% |
Annual severity trend |
- Exposures have remained constant throughout all accident years.
Calculate unpaid claims for accident year 2018 using the reported Berquist-Sherman technique.
Part a (2.75 points)
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