CAS Exam 7 Spring 2016, Question 16
Study guide: Exam 7
Given the following reinsurance company data ($000) as of December 31, 2015:
| Calendar-Accident Year | Earned Risk Pure Premium | Adjusted Premium | Aggregate Reported Loss | Reported Loss Development Factor to Ultimate |
|---|---|---|---|---|
| 2012 | 20,500 | 21,000 | 9,000 | 1.250 |
| 2013 | 21,500 | 27,000 | 6,000 | 2.500 |
| 2014 | 22,800 | 25,000 | 4,000 | 5.000 |
| 2015 | 24,000 | 24,000 | 3,250 | 8.000 |
| Total | 88,800 | 97,000 | 22,250 | n/a |
- The selected credibility factor is 0.80.
Part a (1 point)
Use the Stanard-Bühlmann method to estimate the IBNR for all years combined.
Part b (0.75 points)
Use the credibility weighting of the Stanard-Bühlmann and chain ladder methods as presented by Patrik to estimate the IBNR for accident year 2014.
Answer this question and see the worked solution