1. 

   ig_21 Member

   Please explain how the outstanding claims for year 1,2 and 3 are calculated at 50, -5 and 0.
   Thanks.

    

   ig_21, Sep 10, 2014

   #1
2. 

   Katherine Young ActEd Tutor Staff Member

   We use the expected loss ratio of 100%, and the percentage developed at each point in time. So:
   
   The outstanding claims are 100 x 100% x (1- percentage of claims reported).

    

   Katherine Young, Sep 13, 2014

   #2

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