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CT6 Q&A Bank 3.25 Inflation adjusted chain ladder

L

LloydieW1990

Member
Hey

Could somebody explain why in the solution to this question, the disaccumulated values, after adjusting for inflation (ie "adjusting" to 2015 prices) are then adjusted again? The solution says to obtain future amounts actually paid, but haven't we worked those by inflating the figures once already and disaccumulating?

Thanks

Lloyd
 
This is the standard method for the inflation adjusted BCL method.

First you get the figures into today's (2015) prices.
Then we project them forward.
But since there is inflation in the future - we need to adjust those future claims (not the past ones) to
 
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