Spring 2018 (Original) Q6 c)
I'm not sure how to do c). Here was how I attempted it:
but the problem I run into is that I do not have the remaining CY 2013 and 2014 claims to sum the claims counts in the gap.
I assumed that the chart with the claims-made year and step factors are referring to claim counts in a given report year but in your solution you assume that the step factor relate to accident years. How can I know how to use the step factor? The other solution you provided was developing claims counts, is this a valid method to use? I assumed that I need to use the chart somehow.
Comments
Those are actually the CAS solutions not my solutions, but it looks like in the first solution 6(1), they used the step table to calculate the ultimates, whereas in the second solution 6(2), they used the development method.
In either case, you need the ultimates for each AY, then you just subtract the appropriate value in each row of the triangle from the ultimate for that row. That gives you the number of claims that fall into the gap.