URR calculation

Discussion in 'SP7' started by Riya, Aug 16, 2019.

  1. Riya

    Riya Member

    In URR calculations, why is the average accounting date set at half of the unexpired risk period?

    Please could some one explain? Or do correct me if I have got it all wrong..

    Regards,

    Riya
     
  2. Darren Michaels

    Darren Michaels ActEd Tutor Staff Member

    Hi Riya

    I think you might mean the average accident date as opposed to accounting date? The accounting date is normally specified in the question, eg calculate the URR at 31 December xyz.

    In most questions we assume that the incidence of risk is uniform over each period and therefore the average accident date for the unexpired risks will be at the midpoint of the period of unexpired risk.
     

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