C
ciza5
Member
Could you explain the examiners approach to trending - why do they inflate claims to the mid point of 2010 (e.g year 2005, if we assume claims occur half way then we should project inflation to the end of 2010 (average claim date 2010)i.e. we would multiply by a factor of (1+i)^5.5, whereas in the solution the examiners have multiplied by (1+i)^5
Also, should 2009 not be adjusted to bring it to a Full year, data is as at 31 Oct 2009, so we only have 10 months, I would have adjusted both claims AND exposure to bring to full year values.
Please could someone explain these two points to me.
Thanks,
Also, should 2009 not be adjusted to bring it to a Full year, data is as at 31 Oct 2009, so we only have 10 months, I would have adjusted both claims AND exposure to bring to full year values.
Please could someone explain these two points to me.
Thanks,