Adjustments to Premium Liabilities
In Appendix A, sheet 4, we notice that element 11 is the Maclauray Duration minus Average Accident Date and Accident date of premium liabilities.
What exactly does represent the average of accident date of premium liabilities (vs the "normal" average accident date))?
Does these two values correspond to the adjustement for premium liabilities at p. 6 of the text?
Comments
"What exactly does represent the average of accident date of premium liabilities (vs the "normal" average accident date))?" I think you need to clarify this sentence here. Seems like a word or two is missing.
Here is where you can find the derivation of the AAD adjustment factor for premium liabilities (Appendix A): https://www.cia-ica.ca/docs/default-source/2016/216076e.pdf
Element 11 is only adjusting for the difference in AAD between unpaid claims and premium liabilities. The calculation is explained in Appendix D
Indeed, there was a missing word. Element 8 of the same page: "Mean Average accident of premium liabilities"
And thank you for the references