N
NeedToQualify
Member
Hi,
Can you please help me with the following question?
In Q&A Bank Q3.10 (ii) we have some historical data by policy issue month. The solution treats the "amount of claim payments" as if they were paid in the middle of each month. This assumption seems very wrong to me.
I assume that the "amount of claim payments" refers to payments made to date (year end), so if annual policies were written on average in the middle of each month then average payment dates for each origin (underwriting) month should be the average date between the middle of the origin month and end of the year.
Thanks
Can you please help me with the following question?
In Q&A Bank Q3.10 (ii) we have some historical data by policy issue month. The solution treats the "amount of claim payments" as if they were paid in the middle of each month. This assumption seems very wrong to me.
I assume that the "amount of claim payments" refers to payments made to date (year end), so if annual policies were written on average in the middle of each month then average payment dates for each origin (underwriting) month should be the average date between the middle of the origin month and end of the year.
Thanks