J
Jammy
Member
The solution to this question implies that:
- Credit insurance will be undeveloped after 5 years
Now, this may be true for an UWY cohort, as policies can be multi year (may be even > 5 years of cover)
However, if we are to consider the first accident year as the first cohort, then it might be a completely different story.
The solution does not condition on using UWY or AY cohorts. I am wondering why so?
Is it that credit is always sold on a claims made basis? or is always reserved using UWY cohorts?
Or is it that after specifying AY cohorts, we could have validly argued it to be fully run-off within 5 years?
Thanks in advance,
Jammy
- Credit insurance will be undeveloped after 5 years
Now, this may be true for an UWY cohort, as policies can be multi year (may be even > 5 years of cover)
However, if we are to consider the first accident year as the first cohort, then it might be a completely different story.
The solution does not condition on using UWY or AY cohorts. I am wondering why so?
Is it that credit is always sold on a claims made basis? or is always reserved using UWY cohorts?
Or is it that after specifying AY cohorts, we could have validly argued it to be fully run-off within 5 years?
Thanks in advance,
Jammy