In the chapter of Run-Off Triangle,(pg.42) Emerging Liability=Initial UL-((1/f)*Initial UL), For the year of 6, 7057-(1/1.29*7057)=1586, but in the course note, it is written as 1588. Why?
Hello Jia Most likely it will be due to rounding differences, eg how many decimal places were actually kept on the development factors in the calculations. Please don't worry yourself unduly about this. My advice would be to keep unrounded figures for your workings, eg the development ratios / factors in your calculator and only round at the end (to the same level of accuracy as the original figures). Does this help? Anna
