Q18 Retroactive Date
Hi there! I'm a little bit confused on how the retroactive date is being applied in the solution for Question 18, part b.
The question specifies that the policy's retroactive date is January 1, 2022, and we are asked to calculate the reported losses for the 2022 claims-made policy as of December 31, 2023.
The solution sums (2022, lag 0) and (2022, lag 1). My understanding is that (2022, lag 1) are claims reported in 2022 that occurred in 2021. Since they occurred before the retroactive date of January 1, 2022, I didn't think they would be covered by the claims-made policy. Can you help me understand why they are included in the solution? Thanks!
Comments
Yup, that was an error. Thanks for pointing it out. 😀 I sent you a DM. Click the envelope just under your name in the upper left part of the screen.