W
WelshBird
Member
Can anyone explain?
Question 9 (ii) of the September 2005 paper asks for the application of the Bornhuetter-Ferguson method to estimate the outstanding claims arising from policies written in 2004 whilst taking inflation into account.
For accident year 2004, I applied the development factors to the expected ultimate loss to find the expected claims paid to date (of 1,558,3). I thought the next step would be to compare this to the actual claims paid to date (of 1,480) and adjust the expected claims in subsequent years accordingly. However, no adjustment is made in the answer to the question.
Am I missing something?
Question 9 (ii) of the September 2005 paper asks for the application of the Bornhuetter-Ferguson method to estimate the outstanding claims arising from policies written in 2004 whilst taking inflation into account.
For accident year 2004, I applied the development factors to the expected ultimate loss to find the expected claims paid to date (of 1,558,3). I thought the next step would be to compare this to the actual claims paid to date (of 1,480) and adjust the expected claims in subsequent years accordingly. However, no adjustment is made in the answer to the question.
Am I missing something?