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ST7 April 2013 Q7

E

Edward Smith

Member
The question talks about setting claim reserves on outstanding claims...

I am slightly unclear on how this works in practice. I was under the impression that a claims handler would set the initial reported incurred figure, then the reported OS (case estimate) would then be a product of this initial reported incurred - reported paid? Is this question implying that case reserves are set multiple times on OS claims, or just at initial outset? Given that reported paid = 0 at initial outset, are we assuming that the reported OS = reported incurred = case estimate?
 
Hi

The case estimate is set initially based on rules and information available initially. This may be revised as more information becomes available or as in the case of this question if operating procedures are revised.
 
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