Question: 8.4. Loss reserves are calculated using the closure method. The following are the percentage of claims closed derived from the claim count triangle: Percentage of

8.4. Loss reserves are calculated using the closure method. The following are the percentage of claims closed derived from the claim count triangle: Percentage of Claims Closed in Development Year 0 50% 1 2 30% 40% 3 4 5 60% 75% 100% For AY3, there are 800 claims. 500 are closed in development year 0 and 100 are closed in development year 1. Project the number of claims closed in each of development years 2-5

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Subject: Insurance 2. Loss reserves are calculated using the closure method. The triangle for cumulative loss payments is: Accident Development Years Year 0 1 2 3 4 AY1 5000 7000 8000 8800 9800 AY2...

8.6. Loss reserves are calculated using the closure method. Trend is 6%. Percentage of claims closed and average incremental severity trended to CY5, by development year, are Development Year 1 3...

Please complete the following reports for "kohl's 2017 financial statement" note that the suggested reports have numbers filled in but they do not relate. (Ignore where it says JCPenney on top of the...

5. An actuary projects reserves using the closure method with a severity trend factor of 5% per annum. Percentage of claims closed and average incremental severity trended to CY5 are estimated as...

Were there any changes in Accounting Principle, Changes in Estimate or Correction of Accounting Errors?(p43) If so, provide a brief description of what those changes were. Taxes on earnings. Our...

PLEASE HELP ME!! I can't figure out these answers Prepare a horizontal analysis of the Income Statement for the most current year. (See page 18-11 for the proper format). Note you MUST USE EXCEL to...

Financial information attached. I'm supposed to project for 2015, 2016, and 2017. I do not understand the question or how to do it. Pro-Forma Financial Statements (I/S, B/S and Statement of Cash...

For this assignment, you are to examine the 2018 financial statements of Sprouts Farmers Market, Inc., and use that report to answer the questions that follow. Each answer should be numbered, and...

Where in an annual report of a company I can identify an example demonstrating knowledge of : Business Combination - 100% ? Who is a financial user that would be interested in this? Here is the...

Suppose that in an automatic process of filling oil into cans, the content of can (in gallons) is Y = 50 + X, where X is a random variable with density f(x) = 1 |x| when |x| 1 and 0 when |x| > 1....

Nursery Supply manufactures wooden planter tubs for small trees. Each wooden planter requires about the same level of effort in labor and machinery. The managers of Nursery Supply want to improve the...

Based on the WCDM screen, how can we compar and Japan in terms of overall default risk on theirJapan has over \ ( 3 x \ ) the total debt of Italy, and a worse credit rating, so its default risk...

CT Corp Comprehensive Question Canadian Tire Corporation, Limited ( Canadian Tire ) is a family of companies that includes a retail segment and a financial services division, among others. The retail...

5. Pick a general topic, and try to come up with several different attention getters for that topic. Heres an example for the topic dogs: c Did you know that the human mouth contains more germs than...

Methods of Delivery Guidelines for

Choose a delivery style best suited to you and your speaking situation