for ex: it may be that minor ailments are reported less quickly than serious one , in which case IBNR claims would be smaller than avg . my answer : If many minor ailments are not reported due to less claim amounts then they are more in number but of lower amounts than the serious ones . So the claims incurred are more in number which have not been reported but smaller in claims size than the average . then the answer should have been the IBNR claim size and not just claim would be smaller than the average because claims can denote - number - size /amount
QA bank 4.5 Agreed, although I hope that is fairly clear from the context – i.e. the preceding paragraph is talking about claim sizes. But I do take your point and we’ll clarify this point in next year’s bank. Thanks for pointing this out.