CIA Runoff

Card Set Information

Author:
ED_6C3
ID:
270358
Filename:
CIA Runoff
Updated:
2014-04-12 19:32:50
Tags:
6C
Folders:
CIA Calculation
Description:
6C
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  1. Runoff - undiscounted basis emergence
    • method 1 = Ultt-1 - Ultt
    • method 2 = Liabt-1 - Paidt - Liabt + yield × (Lt-1 + Lt)/2
  2. Factors determining which formula to use
    • available data
    • regulatory requirements
    • management requirements
    • actuary’s preference
  3. Runoff - discounted basis
    • discount amounts in second and third terms to t-1
    • subtract a term for the portion of the investment income earned during t
  4. AY vs CY
    • CY LR = (Paid + ΔUltimate) / Premium
    • AY LR = (Paid + Ultimate) / Premium
  5. Investment income on policy liabilities
    • yield rate multiplied by:
    • net unpaid claims 
    • + net UEP 
    • - gross DPAC 
    • + DPAE 
    • + UE commissions 
    • - agents, brokers and policyholders receivables 
    • - instalment premiums

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