Hello, In solution Practice 9.9(i) I wonder how Page 40 the table of paid claims were derived? Reserving is not my expertise, so overall I struggle to answer this question. If anyone or tutor got hints and tips on how to tackle these kind of questions will be great! Thanks!
They took the development table with loss ratios and multiplied the loss ratio in each cell by the premiums collected for the year to get the paid claims e.g. 13% *21.2 = 2.756 in the first cell. I am not sure you can get out of this one without being on top of SP7 and SP8.
Thanks! A re-read with fresh eyes then realise the table is development not paid values. That explained why I was wondering they seem like treating as percentages, ha. Thanks for your advice in SP7 & SP8, indeed got to be in my revision plan!
