Lab 7 - Lab 7 Loss Reserves In this lab, you will develop...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Lab 7 Loss Reserves In this lab, you will develop the estimated loss reserves necessary using the paid loss development method. The paid loss development method is the method discussed by Ken Fikes in his presentation last week. In Part 1, each of you will use common data. In Part 2, you will develop estimated loss reserves based on data that is unique to you. Part 1: You are given the following losses evaluated at 12/31/2009. Use the paid loss development method as described by Ken Fikes in his presentation to estimate the total required reserves. Mr. Fikes presentation is on the class website. Assume all losses are fully developed at 72 months. Cumulative Paid Losses Accident Month of Development Year 12 24 36 48 60 72 2004 2,000 3,000 3,600 3,960 4,000 4,025 2005 2,500 3,750 4,500 4,560 4,600 2006 3,000 4,500 4,750 4,800 2007 4,000 4,250 4,680 2008 3,750 3,800 2009 3,500 Your work should be completed in Sheet 1 of a spreadsheet. See the two pages attached. This is what your spreadsheet should look like. You do not need to color code the cells.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

Lab 7 - Lab 7 Loss Reserves In this lab, you will develop...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online