- TIA EXAM 5 - FRIEDLAND CH 08

Why would Expected Claims Technique produce negative IBNRs?
- Due to recoveries or excessive case reserves
- Main Assumption: total claims are a function of an a priori estimate and not actual clms activity
- Selected ECR is too low for certain AYs
- Solution: use ECR for most recent years (Clm Dvt mth more reliable for older years)
Change in mix of Products causes over or understate of Exp Clm Method?
- Volume of Comm is increasing
- Higher LR for Comm, expected will be understated
- Method understates IBNR without a change to ECR

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- TIA EXAM 5 - FRIEDLAND CH 08

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- TIA EXAM 5 - FRIEDLAND CH 08

Updated

2011-03-27T21:55:19Z

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