Hi all, I'm a bit confused about certain parts of the calculation from the examiner report for Q4 Sept 2023. Part ii For 2021: How is the ult claim cost of 4039 calculated. For 2022: How is the Event loss of 23,281 and Ult claim cost of 11,233 estimated. Part iv I'm not sure now the 15% inflation figure is applied. Towards the end of the report for 2023 and 2024 how is the claim amount of 1964.49 and 322.88 calculated. Thanks for your help, Raghib
For part (ii), you need to allow for the uneven incidence of policy inceptions, and the flood. You may get different answers from the examiners if you use different assumptions to them. For part (v), you have to use the ACPC method. All of this is covered further in Subject SP7, so you may need to re-familiarise yourself with that. Then have a go and see what you come up with - the calculations are quite lengthy. Full explanations of calculations are given in ASET, which I recommend if you still can't reconcile any differences between your figures and those in the examiner's report.
