CAS Exam 7 Spring 2016, Question 17
Study guide: Exam 7
Consider this statement:
Primary insurer loss reserving is more straightforward than reinsurance loss reserving because (1) claim report lags to reinsurers are generally longer, and (2) claims reporting patterns differ greatly by reinsurance line and type of contract.
Part a (0.5 points)
Identify two other technical problems with reinsurance reserving that support the above statement.
Part b (1 point)
Briefly describe two underlying causes of each technical problem identified in part a. above.
Answer this question and see the worked solution