netting down reserves - two lists or one?

Discussion in 'SP7' started by mattt78, Apr 13, 2011.

  1. mattt78

    mattt78 Member

    i'm a bit confused:

    (i) chapter 23 details 5 approaches to deriving net reserves (i.e. netting down for outwards ri)
    (ii) chapter 14 details 4 approaches to deriving net reserve distributions

    Are these separate lists because ch23 is just talking about point estimate reserves, whereas ch14 is talking about distributions? Or is chapter 14 just listing a couple of the approaches from ch23 (netting down individual claims, and using net triangles), and also applying a couple of 'broad brush' approaches appropriate for distributions (scaling down, and using gross to net ratios)?

    I'd appreciate anyone's thoughts.
     
    Last edited by a moderator: Apr 13, 2011
    mattt78, Apr 13, 2011
    #1
  2. Ian Senator

    Ian Senator ActEd Tutor Staff Member

    You're right, the two lists aren't entirely consistent. Different people wrote the Core Reading for those two chapters, and it's probably just the case that consistency between them was overlooked at the time. I'm sure you'd get credit for any reasonable approach from either list. I'll point this out to the Profession and they can amend it where appropriate for next year's Core Reading, which is being finalised as we speak.

    Thanks for the heads up!

    Ian
     
    Ian Senator, Apr 13, 2011
    #2

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