Hi, I'm really struggling to follow the solution to Q6.18 in the Q&A bank. Part way down the first page of the solution there is a table showing "Latest", "Previous", "Last" and "Current". Does anyone know what these numbers are and how they are calculated? Given that there is only half a mark for all ten numbers I'm sure its something really simple, but the only number I've been able to calculate is the 492 in the first column for current - which is 40% of the incurred claims for the first year (1230). Thanks
The figures are the run-off of claims payments. The question tells you that the pattern is 40%, 30%, 20%, 10%, so the figures on the bottom row are these percentages applied to the incurred claims of 1230. The row above is the same figures for the previous year, and these are one year on and on a premium (and thus claims) 5% smaller. So, for example, 351.43 is 30% of (1230/1.05). Hopefully you can follow the rest now.
