Question:

Use the Bornhuetter-Ferguson method to project the required reserve.

The run-off triangle below shows the incremental claims on a portfolio of 1-year term travel insurance policies: Assume that the ultimate loss ratio is 90% and claims will fully run off by development year 3. Given that the earned premium for 2019 and 2020 is 350 and 500 respectively, total paid claims up to 2020 is 250