2. Assume you are given the following table of claims per year on a group of insurance policies, as well as the premium earned for that policy year. Development Year Premium Policy Year 0 1 2 3 4 2014 1375.66 1448.31 614.46 497.54 106.82 4400 2015 1439.08 1477.92 529.36 338.65 4200 2016 1235.75 1543.43 538.41 4000 2017 1105.41 1586.08 3800 2018 1138.73 3600 3. Using the table of claims per year in Problem 2 as well as the following table for the number of claims in each year, Development Year Policy Year 0 1 2 3 4 2014 14 14 6 5 1 2015 14 15 2016 12 15 55 3 2017 11 16 2018 11 use volume weighted development factors to determine the ultimate number of claims as well as the ultimate average claim size for each policy year. Then determine the reserves that should be held for incurred but not reported claims.

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2. Assume you are given the following table of claims per year on a group of insurance
policies, as well as the premium earned for that policy year.
Development Year
Premium
Policy
Year
0
1
2
3
4
2014 1375.66
1448.31
614.46
497.54
106.82
4400
2015 1439.08 1477.92
529.36
338.65
4200
2016 1235.75 1543.43
538.41
4000
2017 1105.41 1586.08
3800
2018 1138.73
3600
Transcribed Image Text:2. Assume you are given the following table of claims per year on a group of insurance policies, as well as the premium earned for that policy year. Development Year Premium Policy Year 0 1 2 3 4 2014 1375.66 1448.31 614.46 497.54 106.82 4400 2015 1439.08 1477.92 529.36 338.65 4200 2016 1235.75 1543.43 538.41 4000 2017 1105.41 1586.08 3800 2018 1138.73 3600
3. Using the table of claims per year in Problem 2 as well as the following table for the
number of claims in each year,
Development Year
Policy
Year
0
1
2
3
4
2014
14
14
6
5
1
2015
14
15
2016
12
15
55
3
2017
11
16
2018
11
use volume weighted development factors to determine the ultimate number of claims as
well as the ultimate average claim size for each policy year. Then determine the reserves
that should be held for incurred but not reported claims.
Transcribed Image Text:3. Using the table of claims per year in Problem 2 as well as the following table for the number of claims in each year, Development Year Policy Year 0 1 2 3 4 2014 14 14 6 5 1 2015 14 15 2016 12 15 55 3 2017 11 16 2018 11 use volume weighted development factors to determine the ultimate number of claims as well as the ultimate average claim size for each policy year. Then determine the reserves that should be held for incurred but not reported claims.
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