fall 2018 Q24 - net Loss Reserve
Net unpaid claims and adjustment
= Gross Unpaid Claims and Adjustment Expenses 12/2016 - Ceded Unpaid Claims and
Adjustment Expenses 12/2016 + Net Claims and Adjustment Expenses Incurred FY 2017 - Net
Paid Losses FY 2017
= 132,000 - 7,000 + 60,000 - 42,000
= 143,000
why not apply the 8000 in here?
Comments
nvm, I think I understand. thanks
Hi @serenaliyao do you mind explaining this question?
Let me help you out @Zoommie
Basically we need to first calculate the Net Unpaid CAE at Dec 2016
This is 132,000 - 7000
Net Unpaid CAE =125,000
Now we need to move to Net unpaid CAE to Dec 2017
So we need to add all claims we got but we also get to subtract out the claims we paid, so this is
125,000 + 60,000 -42,000 = 143,000
We could add the 8,000 back in, but that would not be the NET unpaid CAE ,but the Gross unpaid CAE.
The question is asking for Net not Gross.
@Staff-T1
Is there any relationship between Net Liabilities and Net Loss Reserve (also referred to Unpaid Net CAE)?
Net UCAE is a liability but there are other items that are considered liabilities