Fall 2017 Q19
Why are we using the full payment pattern to discount the liability and cost of capital?
At December 31, 2016, we are at t-12, 50% of losses are paid already so shouldn't we rebase the payment pattern for the remaining time? In this case 100% of the remaining liability at t-24?
Comments
I think it's because they mentioned Calendar Year payment pattern and not Accident Year payment pattern