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2. You are given the following information regarding cumulative incurred losses for a block of business: Accident Development Years Earned Expected Year 0 1 2

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2. You are given the following information regarding cumulative incurred losses for a block of business: Accident Development Years Earned Expected Year 0 1 2 3 4 Premium Loss Ratio AY1 15000 15500 15800 16000 16200 25000 0.648 AY2 16000 15500 16000 16200 27000 0.630 AY3 17200 18000 19000 30000 0.640 AY4 18500 18300 33000 0.650 AY5 20000 35000 0.650 Losses are mature at the end of 4 years. Calculate the IBNR reserve using the loss ratio method

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