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
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 |