CAS Exam 7 Spring 2018, Question 15
Study guide: Exam 7
For each of the scenarios in parts a., b., and c. below, briefly describe:
- i. The likely impact on the loss data,
- ii. The adjustment that should be made by incorporating expert opinion, and
- iii. The impact on IBNR estimates if no adjustments are made.
Part a (0.75 points)
Claims staffing level has increased over the last year relative to the previous four years.
Part b (0.75 points)
The company's property portfolio has grown rapidly in catastrophe-prone areas.
Part c (0.75 points)
A large claim reserved at $10M ultimately settles favorably for $1M.
Answer this question and see the worked solution