IFRS Sample questions #9

user1user1
in CIA.IFRS17-2

In the solution it says LOB A has lower freq and higher sev compared to LOB B and that LOB A has longer duration than LOB B. How did they infer that?

For part d, proportional scaling was used. Isn't that for reinsurance? But this question is not for reinsurance.

Comments

  • Staff-T1Staff-T1

    Commercial liability vs personal property - I think this is common knowledge the payout for liab is much longer than for property with a lower freq and higher severity.

    Proportional scaling here just means converting a dollar amount of RA to a % of unpaid. Makes it similar to MfADs under IFRS4

Sign In or Register to comment.