CAS Exam 7 Spring 2017, Question 9
Study guide: Exam 7
Given the following information:
Unlimited Age-to-Age Reported Loss and ALAE Development Factors:
| 12-24 | 24-36 | 36-48 | 48-60 | 60-ult |
|---|---|---|---|---|
| 1.463 | 1.309 | 1.114 | 1.043 | 1.019 |
Limited Severity Relativities:
| Limit | 12 | 24 | 36 | 48 | 60 | Ult |
|---|---|---|---|---|---|---|
| $100,000 | 0.95 | 0.93 | 0.90 | 0.88 | 0.86 | 0.85 |
| $250,000 | 0.99 | 0.97 | 0.96 | 0.95 | 0.94 | 0.94 |
Accident Year 2015 limited reported loss and ALAE at 24 months:
| Limit | 24 months |
|---|---|
| $100,000 | $3,450,000 |
| $250,000 | $3,675,000 |
Calculate the IBNR for the losses in the $100,000 to $250,000 layer for accident year 2015 at 24 months using Siewert's direct development approach.
Part a (2.25 points)
Answer this question and see the worked solution