CAS Exam 6C Spring 2018, Question 15
Study guide: Exam 6C
The following information is available for a property and casualty insurance company as at December 31, 2017. All amounts are in thousands of dollars ($000s).
Incremental Paid Losses
| Accident Year | Development Month 12 | Development Month 24 | Development Month 36 | Development Month 48 |
|---|---|---|---|---|
| 2014 | 29,980 | 29,750 | 20,800 | 11,400 |
| 2015 | 30,580 | 30,000 | 19,980 | |
| 2016 | 35,340 | 28,930 | ||
| 2017 | 38,970 |
Undiscounted Unpaid
| Accident Year | Development Month 12 | Development Month 24 | Development Month 36 | Development Month 48 |
|---|---|---|---|---|
| 2014 | 100,212 | 70,123 | 50,295 | 39,412 |
| 2015 | 112,711 | 82,541 | 62,212 | |
| 2016 | 113,786 | 83,123 | ||
| 2017 | 107,234 |
Actuarial Liabilities
| Accident Year | Development Month 12 | Development Month 24 | Development Month 36 | Development Month 48 |
|---|---|---|---|---|
| 2014 | 105,986 | 75,675 | 55,680 | 45,700 |
| 2015 | 119,273 | 88,789 | 67,557 | |
| 2016 | 122,456 | 89,510 | ||
| 2017 | 116,920 |
Incremental Investment Income from Unpaid
| Accident Year | Development Month 12 | Development Month 24 | Development Month 36 | Development Month 48 |
|---|---|---|---|---|
| 2014 | 1,855 | 2,997 | 2,036 | ? |
| 2015 | 1,968 | 3,225 | ? | |
| 2016 | 1,898 | ? | ||
| 2017 | ? |
| Accident Year | Beginning Unearned Premium | Written Premium | Ending Unearned Premium |
|---|---|---|---|
| 2014 | 120,000 | 210,000 | 130,000 |
| 2015 | 130,000 | 243,000 | 150,000 |
| 2016 | ? | ? | ? |
| 2017 | ? | ? | ? |
The annual yield was 3.0% for calendar year 2017.
Part a (1.25 points)
Calculate the discounted excess or deficiency of unpaid claims during calendar year 2017 for accident years 2016 and prior.
Part b (2 points)
Calculate the undiscounted loss ratio and discounted loss ratio as at December 31, 2017 in the Unpaid Claims and Loss Ratio Analysis Exhibit for accident year 2014.
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