Question 1(i) - How is the period of inflation calculated? I'm confused at how to calculate the midpoint for claims for each accident year. Question 2(iv) - In the answer, the investment return on the technical account is calculated by multiplying the investment return % by the sum of UPR (gross of DAC) plus outstanding claims reserves. Shouldn't the UPR be net of DAC instead of gross of DAC? Thanks.
Question 1 Always worth doing a forum search before posting: http://www.acted.co.uk/forums/showthread.php?t=3456 Question 2 Yes, the UPR should have been net of DAC. The examiners obviously decided to cut a small corner in this one. I'd recommend using UPR net of DAC in the exam nowadays, unless it's clear from the question that you're not meant to.
The link above doesn't work. Has it been removed? Would like to seek on some guidance for Q1 above, please.
We transferred to using new forum software at some point, and as a result, any links to threads in the old software stopped working. But seeing your other post, I think you've found the relevant thread anyway. There are quite a few threads discussing the same question you're asking about, if you work forwards in time from the oldest year of posts.
