I had a question from the revision booklets. Booklet 5 question 9 (303 April 99, Question 11). In part iii relating to the unexpired risks, I am not sure what the inflation period in the answer relates to. Any help would be much appreciated.
Top of page 83 gives the inflation period for each month. So for example, January pols written mid-Jan. By end of June, 5.5 months expired, 6.5 months unexpired. So average claim in unexpired period 3.25 months after end-June 99. So inflation needed from mid-97, to 3.25 months after mid-99, which is 27.25 months in all.
