CAS Exam 6C Spring 2016, Question 14
Study guide: Exam 6C
The following information is provided for a property and casualty insurance company as of December 31, 2015. All amounts are in thousands of dollars ($000s).
Incremental Paid:
| AccYr | 12 | 24 | 36 | 48 |
|---|---|---|---|---|
| 2012 | 2,000 | 1,000 | 500 | 0 |
| 2013 | 1,500 | 750 | 250 | |
| 2014 | 3,500 | 2,000 | ||
| 2015 | 2,500 |
Undiscounted Ultimate:
| AccYr | 12 | 24 | 36 | 48 |
|---|---|---|---|---|
| 2012 | 4,000 | 3,500 | 3,750 | 3,500 |
| 2013 | 2,500 | 2,750 | 2,750 | |
| 2014 | 5,500 | 7,000 | ||
| 2015 | 4,500 |
Actuarial Present Value Ultimate:
| AccYr | 12 | 24 | 36 | 48 |
|---|---|---|---|---|
| 2012 | 4,500 | 3,600 | 3,800 | 3,500 |
| 2013 | 2,750 | 2,900 | 2,800 | |
| 2014 | 6,000 | 7,400 | ||
| 2015 | 5,000 |
The annual yield rate is 4.5%.
Part a (0.5 points)
Calculate the undiscounted excess / (deficiency) ratio for accident year 2012 as of December 31, 2015.
Part b (1 point)
Calculate the cumulative investment income on unpaid claims for accident year 2013 as of December 31, 2015.
Part c (0.5 points)
Calculate the cumulative discounted excess / (deficiency) ratio for accident year 2013 as of December 31, 2015.
Answer this question and see the worked solution
Concepts tested
- Excess (Deficiency) Ratio
- Loss Reserve Discounting
- Canadian Annual Return
- Loss Development
- Unpaid Claims