Actuarial Notes

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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Concepts tested

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