CAS Exam 7 Spring 2013, Question 2
Study guide: Exam 7
Given the following information:
| Accident Year | Incremental Paid Loss 0-12 ($000) | Incremental Paid Loss 12-24 ($000) | Incremental Paid Loss 24-36 ($000) | Premium ($000) |
|---|---|---|---|---|
| 2010 | 1,400 | 650 | 280 | 3,600 |
| 2011 | 1,000 | 850 | 3,700 | |
| 2012 | 1,500 | 3,650 | ||
| Total | 3,900 | 1,500 | 280 | 10,950 |
Assume that there is no further development beyond 36 months.
Part a (2 points)
Calculate the individual loss ratio claims reserve R^{\text{ind}} for the total of accident years 2010 through 2012.
Part b (0.75 points)
Calculate the collective loss ratio claims reserve R^{\text{coll}} for the total of accident years 2010 through 2012.
Answer this question and see the worked solution