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The delay triangles given below relate to a portfolio of property insurance policies, for which it may be assumed that the claims are fully run
The delay triangles given below relate to a portfolio of property insurance policies, for which it may be assumed that the claims are fully run off by the end of development year 2. The cost of claims incurred each year is given in the table below:
Development Year | |||
Accident Year | 0 | 1 | 2 |
2019 | 2527 | 1447 | 587 |
2020 | 3388 | 1788 | |
2021 | 4713 |
The number of reported claims each year is given in the table below:
Development Year | |||
Accident Year | 0 | 1 | 2 |
2019 | 130 | 65 | 10 |
2020 | 172 | 81 | |
2021 | 256 |
Given that the total claims paid to date is 10,321 calculate the outstanding claims reserve for this cohort using the average cost per claim method.
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