2016 Fall 23

daviddavid
in F-13-BerqSherm

For this problem, the Berquist Sherman CDF for AY2015 is 1.985. I calculated the unadjusted reported development factor for AY2015 to be 2.383. Is it always true that the BS CDF will be lower than development CDF if the severity is positive?

Comments

  • GrahamGraham

    I don't think that will be true in general because there are a lot of moving parts in the BS-Reported method. The values in the restated reported loss triangle above the diagonal have no consistent relationship the original values since those values above the diagonal are simply detrended from the diagonal.

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