Excess Ratio

thesuperactuarythesuperactuary
edited October 2022 in MSA.Ratios

From MSA question format (past exam questions), can we calculate 1 yr development/Eq directly? - i don't seem to find the sample calculation of this ratio under MSA paper

Comments

  • Staff-T1Staff-T1

    I would guess so if they provide you the information? Are you asking me why there is no past year question related to this? Or are you asking me where to find this in the source (page 7)

  • thesuperactuarythesuperactuary

    There seems to have no past questions asking to calculate the development to equity before. I am just wondering how to calculate it?

    Does 1 year development refer to difference between 2 ultimate Unpaid Claims and Expense as of 2 evaluation dates?

  • adipelinoadipelino

    My guess was that it'd be the same as calculating the excess (deficiency) as we've seen before, but then just dividing by equity.

    I've seen old questions where they ask for the excess (deficiency) ratio and just divide by the beginning unpaid claims, so I thought it would be the same but dividing by equity.

    Is this the right train of thought? @Staff-T1

  • Staff-T1Staff-T1

    @adipelino has the same idea as me. It shouldn't be too difficult

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