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Chapter 14: Solution 14.7 [2011]

J

jensen

Member
Hi again

The question asks why development pattern is different for ground up claims and claims to layer excesses.

In the last line of the solution, it says that care should be taken when using triangulated data of excess of loss business where the excess limits have remained constant over each origin year.

My take is that we should be more careful where the limits are changing over time than constant limits because it is easier to adjust for the effect of constant limits than for different limits. Is my understanding correct?

Thanks
 
Think you're misread the sentence, which says "care should be taken that the excesses have remained..."
 
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