Hi, my question relates to the application of the TPPI inflation to the 2005 and 2006 years. If the accidents happen half way through the year then shouldn't the 2005 year accidents get 1.07^2.5 of inflation (from mid 05 to end of 08) to bring the claims to the start of the 2008 year. Once there the 2008 inflation takes over and is at 1.09. The answer in the report only apply 2 years of inflation 1.07^2. What am I missing? Thanks in advance, R
Can you check which question you're talking about please Redzer? Neither the April nor September paper Q7 appear to be the one you're looking at.
This has been asked before. See https://www.acted.co.uk/forums/index.php?threads/speciman-2010-q7.10907/
I'm asking a slightly different question. I'm not disagreeing with the 5 years of claims inflation but how exactly it is split between the years when there is multiple claims inflation rates. I also didn't want to add to an old thread. R
Yes this is a bit odd. I shouldn't worry about it too much though. Notice that the question says "estimate", so in practice a wide range of approaches was allowable as long as you stated your (suitable) assumptions.
