The table below shows the incremental claims paid on a portfolio of insurance policies together with...

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The table below shows the incremental claims paid on a portfolio of insurance policies together with an extract from an index of prices. Claims are fully paid by the end of development year 3. Accident Year 2006 2007 2008 2009 0 103 88 110 132 Development Year 1 32 21 35 2 3 29 16 13 Year 2006 2007 2008 2009 Price index (mid year) 100 104 109 111 Calculate the reserve for unpaid claims using the inflation-adjusted chain ladder approach, assuming that future claims inflation will be 3% p.a. [11] The table below shows the incremental claims paid on a portfolio of insurance policies together with an extract from an index of prices. Claims are fully paid by the end of development year 3. Accident Year 2006 2007 2008 2009 0 103 88 110 132 Development Year 1 32 21 35 2 3 29 16 13 Year 2006 2007 2008 2009 Price index (mid year) 100 104 109 111 Calculate the reserve for unpaid claims using the inflation-adjusted chain ladder approach, assuming that future claims inflation will be 3% p.a. [11]

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