CasInsoldasstquestions&answers - AS 4426F...

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AS 4426F Assignment Questions and Answers on Property/Casualty Insurance Ratemaking October 2008 Each of the 10 question parts is worth the same number of marks (3) . 1. (a) Explain in detail what is meant by case-incurred loss development and accident year age . Case-incurred losses include paid losses and case reserves for claims incurred in a given accident year that have been reported. Case-incurred loss development refers to the progression of case-incurred losses over time as more claims are reported and as losses on reported claims are paid. Case-incurred losses may not reach their ultimate value until several years after the end of the accident year under consideration. Accident year age is the time since the beginning of the accident year. So, case incurred loss development can be investigated by looking at case-incurred losses as a function of accident year age. (b) Why do case-incurred losses tend to increase with accident year age? Why is the case-incurred losses value not necessarily a monotone increasing function of
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CasInsoldasstquestions&answers - AS 4426F...

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