Schedule P: Understanding Parts 2,3,4
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Calculate the case incurred and paid loss & net DCC expense for the current CY. (See 2017.Fall #11)
Part 2: Incurred Net Loss & DCC at YearEnd
AY 
CY2 
CY1 
CY 
AY2 
 
 
 
AY1 

 
 
AY 


 
Part 3: Cumulative Paid Net Loss & DCC at YearEnd
AY 
CY2 
CY1 
CY 
AY2 
 
 
 
AY1 

 
 
AY 


 
Part 4: Bulk & IBNR Reserves on Net Loss & DCC at YearEnd
AY 
CY2 
CY1 
CY 
AY2 
 
 
 
AY1 

 
 
AY 


 
1
case reserve = (total incurred) – paid – IBNR = (part 2) – (part 3) – (part 4)
2
paid in CY = (cum paid thru CY) – (cum pd thru CY1)
CY paid
= Σ (CY paid across all AYs)
CY case incurred
= Σ (chg(case)) + Σ CY paid
Need to find chg(case)
AY 
CY1 case 
CY case 
chg(case) 
CY2 
 
 
 
AY1 
 
 
 
AY 
 
 
 


sum → 
 
Need to find paid in current CY
AY 
CY paid 
AY2 
 
AY1 
 
AY 
 
sum → 
 