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 2015 1439.08 1477.92 614.46 497.54 106.82 4400 2016 1235.75 1543.43 2017 1105.41 1586.08 529.36 338.65 538.41 4200 4000 3800 2018 1138.73 3600 Assume the loss ratio for each year is expected to be the loss ratio in 2014. Using the Bornhuetter-Ferguson method with volume weighted development factors, determine the reserve that should be held for the incurred but not reported claims.
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 2015 1439.08 1477.92 614.46 497.54 106.82 4400 2016 1235.75 1543.43 2017 1105.41 1586.08 529.36 338.65 538.41 4200 4000 3800 2018 1138.73 3600 Assume the loss ratio for each year is expected to be the loss ratio in 2014. Using the Bornhuetter-Ferguson method with volume weighted development factors, determine the reserve that should be held for the incurred but not reported claims.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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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
2015 1439.08 1477.92
614.46
497.54
106.82
4400
2016 1235.75 1543.43
2017 1105.41 1586.08
529.36 338.65
538.41
4200
4000
3800
2018 1138.73
3600
Assume the loss ratio for each year is expected to be the loss ratio in 2014. Using the
Bornhuetter-Ferguson method with volume weighted development factors, determine the
reserve that should be held for the incurred but not reported claims.
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