Hi, looking at the solution for this, I agree that the premiums should be on level. however, development patterns are also as at 31st March. my approach was to interpolate these assuming 2006 is fully developed. could you please explain why these were taken as they are if we can assume 2 months further development by June 1st? Thanks, Michaela
Hi The data for the incurred claims and the development patterns are on the same date. Using 2011 as an example the information should be read as "1,960,000 is 25% of the expected ultimate claimsas of 31 March 2012". Therefore, a two-month adjustment to the end of the policy year is not required because we can get the ultimate claims with the information supplied.
