2018Spring - 15 Incurred claims
In part (b), should we use incurred loss = paid + change(Unpaid)= (29980+29750+20800+11400)+(39412-50295) for loss ratio? The answer seems to use "ultimate loss" instead of "incurred loss" for the loss ratio.
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In part (b), should we use incurred loss = paid + change(Unpaid)= (29980+29750+20800+11400)+(39412-50295) for loss ratio? The answer seems to use "ultimate loss" instead of "incurred loss" for the loss ratio.
Comments
Hi, in the UCLR section of the AAR, loss ratio always means ultimate loss ratio
Interesting. In battleact "CCIR.ARinstr", it says net loss ratio= APV(incurred)/EP.
Hi,
I think the key part of this formula is the mention of APV. PfADs and Discounting are always done on ultimate losses.