April 2010 q9 (v)

Discussion in 'SP7' started by 12345, Sep 29, 2011.

  1. 12345

    12345 Member

    Completely fuddled by this one, is the development period at the end of the quarter specified?

    I'm a little confused why, for example, the 513 figure at the Q4 2008, development month period 3 isn't included in the annualised 2008, development year 1 figure.

    I'm working on the thinking that it represents claims from 1.10.2008 to 31.12.08 and therefore claims that occurred in 2008? Is that wrong?

    Can someone put my out of my misery?!
     
    12345, Sep 29, 2011
    #1
  2. Katherine Young

    Katherine Young ActEd Tutor Staff Member

    Hello 12345,

    The question requires you to collapse the triangle “using approach (a)”, ie to give a triangle of September diagonals. So we need to construct a triangle where each diagonal represents the position as at the end of September.

    At the end of the September 2008, it is impossible for accidents to have occurred yet in Q4, because this is in the future! We should only include the September position for the first 3 quarters.

    Hence, for accident year 2008:

    C21 = 493+ 5,322 +11,666 =17, 481

    This is a salutary reminder to use the data you are given carefully and to read the question! :)

    Kind regards,

    Katherine.
     
    Last edited: Sep 30, 2011
    Katherine Young, Sep 30, 2011
    #2

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