You are given the following cumulative incurred losses by development year:

Accident Year   DY0        DY1      DY2     DY3
          3                2,100   2,520   3,780   4,347
          4                2,700   3,240   4,860   5,589
          5                3,300   3,960   5,940  
          6                3,700   4,440      
          7                4,000          

Using the loss development technique and all-year arithmetic average incurred loss development factors, the estimated ultimate losses for Accident Years 3 and 4 are 4,673 and 6,008, respectively.

Estimate the ultimate loss for Accident Year 6 as of December 31, Year 7.

Answer rating: 100% (QA)

Accident Year DY0 DY1 DY2 DY3 Ultimate Loss DY1DY0 DY012 ... View the full answer