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You need to divide the incremental claims paid in the period (in 2018 terms) by the number of claims settled in the period, ie -...
Hi Minh Ho Your understanding of a 'traditional' commutation arrangement whereby the reinsurance contract is terminated with the liabilities...
Hi Toby I think you make some valid points, which would probably also be worth some credit in the exam. Don't forget though that we do need to...
Hi Heena I am afraid that the calculation above does not look correct to me. You need to work with the reserves (or ultimates by accident...
Hi Heena If I have understood your approach correctly, then I think there may be a slight flaw in step 5. It sounds like you are assuming that...
Proportional reinsurance is normally written on a risks-attaching basis. As motor insurance is a relatively homogeneous class of business, the...
We are equating recoveries less premiums (including reinstatement premiums pro-rata to amount recovered) for programme B and programme A. So for...
Surplus RI is a type of proportional RI. If the loss gets bigger the amount retained by the insurer and the amount ceded to the reinsurer increase...
That’s correct it was added to the ST/SP syllabus in 2010 when ST3 was split into ST7 (now SP7} and ST8 (now SP8). It has been examined in...
Have a look at the workings in the post Ian has linked to above. Recall that the increase in the free assets from one year to the next will be...
This may make it easier for the regulator, eg to compare amounts between different insurers.
Don't forget the basic chain ladder method is applied to cumulative and not incremental claims triangles. I think your examples above are based...
Between mid-May and the end of the year there are 7.5 months, so the business in Q2 is 7.5 months earned by the end of the year - which gives...
The data provided is at 31 March 2012 and the annual contract runs from 1 June each year, so you need to gross up for the premiums estimated to be...
No this question is relevant to SP8 and not SP7 as it is about pricing and not reserving or capital modelling. If you look at this post on the...
