CAS Exam 7 Spring 2017, Question 7
Study guide: Exam 7
Given the following information:
| Accident Year | Cumulative Reported Loss at $1,000,000 Limit ($000,000): 12 Months | 24 Months | 36 Months | 48 Months |
|---|---|---|---|---|
| 2013 | 450 | 1,354 | 2,465 | 3,348 |
| 2014 | 355 | 1,535 | 2,747 | |
| 2015 | 398 | 1,411 | ||
| 2016 | 355 |
| Accident Year | Limited Expected Values at $1,000,000 Limit ($000): 12 Months | 24 Months | 36 Months | 48 Months |
|---|---|---|---|---|
| 2013 | 24 | 110 | 215 | 255 |
| 2014 | 25 | 115 | 214 | 265 |
| 2015 | 26 | 117 | 227 | 281 |
| 2016 | 26 | 121 | 236 | 290 |
| Accident Year | Limited Expected Values at $500,000 Basic Limit ($000): 12 Months | 24 Months | 36 Months | 48 Months |
|---|---|---|---|---|
| 2013 | 24 | 109 | 195 | 223 |
| 2014 | 25 | 113 | 195 | 228 |
| 2015 | 26 | 115 | 204 | 239 |
| 2016 | 26 | 119 | 210 | 244 |
- Assume the 48 month to ultimate development factor is 1.000
Part a (0.5 points)
Calculate the unadjusted 24 to ultimate volume weighted average development factor based on the reported loss triangle limited to $1,000,000.
Part b (1.75 points)
Calculate the applicable 24 to ultimate volume weighted average development factor based on the reported loss triangle limited to $1,000,000 using the procedure outlined by Sahasrabuddhe.
Answer this question and see the worked solution