Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Kindly help calculate the following economical questions The table below shows cumulative claims (not adjusted for inflation) from a portfolio of insurance policies for 4

image text in transcribed

Kindly help calculate the following economical questions

image text in transcribed
The table below shows cumulative claims (not adjusted for inflation) from a portfolio of insurance policies for 4 accident years. Year of Development Year origin 0 1 2 1994 2,047 3,141 3,209 3,310 1995 2.471 3.712 3,810 1996 2, 3XX 3,750 1997 2,580 It may be assumed that payments are made in the middle of a calendar year. It is estimated that the inflation rate applicable to these data has been 5% per annum over the relevant period. Use the inflation adjusted chain ladder method to estimate the total outstanding payments, up to the end of development year 3, for accident year 1997 in mid-1997 prices. [10]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Microeconomics

Authors: Hal R. Varian

9th edition

978-0393123968

Students also viewed these Economics questions