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Q&A Bank q3.14

B

B_actuary

Member
The question shows the number of claims reported in a year, tabulated by accident year. Can you please confirm that e.g. Where January has 256 claims, this means that 256 claims relate to accidents which occurred in January but were reported at some point in that year? If my understanding is correct, then using the reporting delay pattern provided, this means that these claims would have been reported from Jan-June (since 5 months is the longest time it takes for claims to be reported).

If the above is true, I am confused by the question in part i). Is the question asking how many claims from the table are Reported in the same year? When I read the question, I initially thought it was asking how many claims occurred but the solution implies the former.
 
Hi B

I think the months are accident months, but the claims are on reported basis, i.e. not ultimate or undeveloped.

Since there is a reporting delay of 5 months, accidents reported from Jan to July would have been fully reported (or developed) by December. Therefore we need to adjust the reported claims to date for months Aug to Dec, to the ultimate level using the delay table.

Make sense?
 
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