1. I didn't understand this in page no. 68 of triangulation methods Whichever method is used there must be consistency between: • the assumption regarding the period to which the UPR is apportioned • the credit of the (full) premium received • the credit or debit for outstanding or overpaid premiums respectively. 2. What is calendar year development effect that is being spoken in latent claims? 3. Weakness of ACPC: Assumption of distribution of claims being same for each origin or settlement year? I don't understand this clearly. 4. I want to understand what does allowing for an effect (eg: inflation, changes in settlement rates) mean? Does that mean we take note of these changes and frame our triangle that considers inflation or changes in settlement rates? Is it that as a result of allowing for the effects the pattern gets distorted?
1. UPR = (Premium Received+Outstanding Premiums-Overpaid Premiums)*(period to which the UPR is apportioned)/(period to which the Premium is apportioned) ... So there must be consistency between them. 2. Means the comparable effects by diagonal in terms of triangle format. 3. ACPC assumes same distribution of severity. 4. The purpose is to estimate value of data that would be as at date of valuation.