1. The following data showing incremental loss payments (in thousands) and incremental closed claims are given. Incremental Loss Payments (000) through Development Year Accident Development Years Year 0 1 2 3 4 AY4 2,000 4,000 3,000 2,200 2,800 AY5 2,600 4,240 4,080 4,680 AY6 2,380 6,580 5,440 AYZ 3,120 7,680 AY8 3,800 Incremental Closed Claims through Development Year Accident Development Years Ultimate Claim Counts Year 0 1 2 3 4 AY4 400 300 150 80 70 1,000 AY5 480 310 210 140 1,200 AY6 500 450 240 1,400 AY7 570 480 1,500 AYS 600 1,500 Assuming the annual severity trend is 5%, calculate the loss reserve using the claims closure approach (excel file provided) as described in Section 3.6.5. 1. The following data showing incremental loss payments (in thousands) and incremental closed claims are given. Incremental Loss Payments (000) through Development Year Accident Development Years Year 0 1 2 3 4 AY4 2,000 4,000 3,000 2,200 2,800 AY5 2,600 4,240 4,080 4,680 AY6 2,380 6,580 5,440 AYZ 3,120 7,680 AY8 3,800 Incremental Closed Claims through Development Year Accident Development Years Ultimate Claim Counts Year 0 1 2 3 4 AY4 400 300 150 80 70 1,000 AY5 480 310 210 140 1,200 AY6 500 450 240 1,400 AY7 570 480 1,500 AYS 600 1,500 Assuming the annual severity trend is 5%, calculate the loss reserve using the claims closure approach (excel file provided) as described in Section 3.6.5