Revision as of 18:16, 25 July 2024 by Admin (Created page with "The experience period is accident year 1 and the midpoint of the experience period is 07/01/CY1. Since the policies are annual, the forecast period is the beginning of calendar year 4 to the end of calendar year 5 with a midpoint equal to the end of calendar year 4. Hence the trend factor equals 1.015 <sup>4.5</sup> = '''1.0693'''.")
Exercise
ABy Admin
Jul 25'24
Answer
The experience period is accident year 1 and the midpoint of the experience period is 07/01/CY1. Since the policies are annual, the forecast period is the beginning of calendar year 4 to the end of calendar year 5 with a midpoint equal to the end of calendar year 4. Hence the trend factor equals 1.015 4.5 = 1.0693.