expected claim size

When calculating the expected claim size(where there in an excess or retention ) when do do we use the conditioning (P(X>excess/retention )) there appears to be some inconsistencies as acknowledged by the notes.

"This is the mean of claims paid by the insurer given that they are referred to the insurer.
This is the approach taken by the examiners in most of these questions (April 00 Q3,
April 02 Q4 and this question). However there is some inconsistency in their solutions
(see Sept 99 Q3 and April 07 Q3)."

 

yet another thing to worry bout

Im pretty afraid of this forthcoming exam , I take it I'm not alone in the hope we get a nice paper on Tuesday. CT6 is very hard. For this i would do the conditioning if you have time ( and clearly point out what your doing ) or don't if you think you can get more marks elsewhere in the remaining time. Although sometimes they do state explicitly to do the conditioning .

 

I've been struggling with the same thing - hope this helps:

http://www.acted.co.uk/forums/showthread.php?t=1534

 

thanks

That helps actually but it would help if the ambiguity didn't exist.