Hi there When calculating the loss ratio for a particular year, are we not purely interested in the claims incurred in that year and the premiums earned over the same period? The solution does not subtract claims paid in year 2009 that relate to year 2008. In addition, the solution adds in IBNR (which is correct). The result is that the numerator represents a full year's worth of claims as well as a portion of 2008's claims, and the denominator represents income only from 2009. I think the principle of consistency should dictate we have equal periods in both the numerator and the denominator. Any help is welcome.
