Revision as of 18:27, 25 July 2024 by Admin (Created page with "Since the policies are semi-annual policies, some policies written in calendar year 1 may give coverage until 06/30/CY2. In particular, the midpoint of the experience period is 10/01/CY1. Similarly, the forecasting period is 08/01/CY5 to 01/31/CY7 and the midpoint is 05/01/CY6. Hence the trend factor equals 1.04 <sup>14/3 </sup> = '''1.201'''.")
Exercise
ABy Admin
Jul 25'24
Answer
Since the policies are semi-annual policies, some policies written in calendar year 1 may give coverage until 06/30/CY2. In particular, the midpoint of the experience period is 10/01/CY1. Similarly, the forecasting period is 08/01/CY5 to 01/31/CY7 and the midpoint is 05/01/CY6. Hence the trend factor equals 1.04 14/3 = 1.201.