janetng2

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janetng2
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  • It's possible when expected claims is not the same as actual claims. LRC is based on expected claims, where as LIC is actual incurred. As policies are earned, LRC becomes LIC, but at the same time you need to adjustment the LIC to reflect actual exp…
    in RA for LIC Comment by janetng2 October 2025
  • The average accident date for unearned premium is 4 months, not mid-year. That's why t = 0.33, 1.33, 2.33, etc for discounting LRC. The derivation of the AAD can be found in this old paper (there's probably a newer version): https://www.casact.or…
    in Q18 and the AAD adjustment Comment by janetng2 October 2025
  • For NISR, the denominator is Total Insurance Revenue only, because allocation of reinsurance premiums paid is already included in the numerator. This is why the formula was updated in Apr 2024. The 2023 version of MSA legend in the Fall 2025 syllabu…
    in Net Insurance Service Ratio Denominator Comment by janetng2 October 2025
  • The new MSA legend (Oct 2024) is correct. Allocation of reinsurance premiums paid is from 201811919. The amount on 602559932 may not be equal to 20.18 because it may include the amortization of reinsurance acq. cash flows and the change in LRECC, si…
    in Net Insurance Service Ratio Denominator Comment by janetng2 October 2025