BattleActs100

IRIS: Reserve Ratios (11,12,13)

myID_+ priorDate_+ record_+ WET_+ fadeFactor_

Calculate IRIS ratios 11-13 and state (y/n) whether each is within its usual range.

  current score:
0.000

Ratio Value 1 In Range? (y/n)
IRIS 11
IRIS 12
IRIS 13
1 If your answer is -5.1% then enter either:
  • -5.1%
  • -5.1 (omit percent sign)
   Do not enter in the format -0.051.

IRIS 11: 1-year loss reserve development
IRIS 12: 2-year loss reserve development
IRIS 13: reserve deficiency (redundancy)
Item CY CY - 1 CY - 2
NEP ---- ---- ----
reserves ---- ---- ----
Surplus ---- ---- ----
1-year reserve devlpt ---- ---- ----
2-year reserve devlpt ---- ---- ----

IRIS 11

= (1-year reserve development) / (surplusCY-1)

IRIS 12

= (2-year reserve development) / (surplusCY-2)

IRIS 13

= deficiency / surpluscurrent

where
deficiency
= required reservescurrent

required
= NEPcurrent x average [ (reserves-to-premium ratio)CY-1, (reserves-to-premium ratio)CY-2 ]

(reserves-to-premium ratio)CY-1
= [ reservesCY-1 + (1-year reserve devlpt) ] / NEPCY-1

(reserves-to-premium ratio)CY-2
= [ reservesCY-2 + (2-year reserve devlpt) ] / NEPCY-2

Usual Range


IRIS 11
< 20%

IRIS 12
< 20%

IRIS 13
< 25%

Solution:
Ratio Value In Range?
IRIS 11
IRIS 12
IRIS 13
deficiency 0
required 0
R-to-PCY-1 0
R-to-PCY-2 0