Thanks for the answer.
I get this problem when calculating the investment income.
I'm not treating the claim payments as cumulative, but as payments made to date with respect to each underwriting month.
e.g. the July payments refer to policies issued in July, but the payments could be made in any development month in the year. The investment income calculation assumes that the payments were made in development month zero.
Also I think the only way to identify whether numbers refer to calendar months or underwriting months is the fact that the o/s are not cumulative.
I'm I getting this very wrong?
P.S. Shouldn't we also be calculating a claims handling reserve?
Last edited by a moderator: Sep 27, 2007