Revision as of 22:02, 22 October 2024 by Admin (Created page with "We compute: {| class="table table-bordered" |- ! Year !!Earned Premium !! Expected Loss Ratio !! Expected Loss !! Cumulative Development Factor !! Reserve |- | AY1 || 500,000 || 0.4||200,000 || 1.1 * 1.07 * 1.05 = 1.2356 || (1-1/1.2356) * 200000 = 38,135.32 |- | AY2 || 550,000 || 0.43 || 236,500 || 1.2 * 1.1 * 1.07 * 1.05 = 1.483 || (1-1/1.483) * 236500 = 77,025.96 |- | AY3 || 605,000 || 0.46 || 278,300 || 1.25 * 1.2 * 1.1 * 1.07 * 1.05 = 1.8534 || (1-1/1.8534) * 2...")
Exercise
ABy Admin
Oct 22'24
Answer
We compute:
| Year | Earned Premium | Expected Loss Ratio | Expected Loss | Cumulative Development Factor | Reserve |
|---|---|---|---|---|---|
| AY1 | 500,000 | 0.4 | 200,000 | 1.1 * 1.07 * 1.05 = 1.2356 | (1-1/1.2356) * 200000 = 38,135.32 |
| AY2 | 550,000 | 0.43 | 236,500 | 1.2 * 1.1 * 1.07 * 1.05 = 1.483 | (1-1/1.483) * 236500 = 77,025.96 |
| AY3 | 605,000 | 0.46 | 278,300 | 1.25 * 1.2 * 1.1 * 1.07 * 1.05 = 1.8534 | (1-1/1.8534) * 278,300 = 128,143.5 |
| Total: 243,305 |