3. An insurance company issues annual policies, all of which are effective October 1st of each...

 

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3. An insurance company issues annual policies, all of which are effective October 1st of each year. You are given the information below: Claim Number 1 2 3 4 5 6 Date of Reserve as of Accident 15/4/2017 1/8/2019 2/12/2019 5/1/2018 15/11/2018 1/2/2020 Calculate: 31/12/2018 $50,000 0 0 Paid During 2019 SO 50,000 2020 $0 0 10,000 5,000 0 0 150,000 25,000 600,000 500,000 1,000,000 0 Reserve as of 31/12/2019 31/12/2020 $50,000 100,000 150,000 125,000 $50,000 100,000 200,000 125,000 1,000,000 Unearned premium as of January 1st, 2019: $600,000 Written premium on issued policies in 2019: $1,500,000 0 0 100, 000 (a) 2019 calendar year incurred-to-earned claim ratio evaluated as of December 31st, 2020. [6 marks] (b) 2019 accident year claims evaluated as of December 31st, 2020. [3 marks] (c) 2019 policy year earned-to-incurred claim ratio evaluated as of December 31, 2020. Assume policy year 2019 runs from 1/10/2019 through 30/9/2020. [3 marks] 3. An insurance company issues annual policies, all of which are effective October 1st of each year. You are given the information below: Claim Number 1 2 3 4 5 6 Date of Reserve as of Accident 15/4/2017 1/8/2019 2/12/2019 5/1/2018 15/11/2018 1/2/2020 Calculate: 31/12/2018 $50,000 0 0 Paid During 2019 SO 50,000 2020 $0 0 10,000 5,000 0 0 150,000 25,000 600,000 500,000 1,000,000 0 Reserve as of 31/12/2019 31/12/2020 $50,000 100,000 150,000 125,000 $50,000 100,000 200,000 125,000 1,000,000 Unearned premium as of January 1st, 2019: $600,000 Written premium on issued policies in 2019: $1,500,000 0 0 100, 000 (a) 2019 calendar year incurred-to-earned claim ratio evaluated as of December 31st, 2020. [6 marks] (b) 2019 accident year claims evaluated as of December 31st, 2020. [3 marks] (c) 2019 policy year earned-to-incurred claim ratio evaluated as of December 31, 2020. Assume policy year 2019 runs from 1/10/2019 through 30/9/2020. [3 marks]

Answer rating: 100% (QA)

a The 2019 calendar year incurredtoearned claim ratio eva... View the full answer