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 Year-End
AY |
CY-2 |
CY-1 |
CY |
AY-2 |
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---- |
---- |
AY-1 |
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---- |
---- |
AY |
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Part 3: Cumulative Paid Net Loss & DCC at Year-End
AY |
CY-2 |
CY-1 |
CY |
AY-2 |
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---- |
---- |
AY-1 |
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---- |
---- |
AY |
|
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Part 4: Bulk & IBNR Reserves on Net Loss & DCC at Year-End
AY |
CY-2 |
CY-1 |
CY |
AY-2 |
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---- |
---- |
AY-1 |
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---- |
---- |
AY |
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1
case reserve = (total incurred) – paid – IBNR = (part 2) – (part 3) – (part 4)
2
paid in CY = (cum paid thru CY) – (cum pd thru CY-1)
CY paid
= Σ (CY paid across all AYs)
CY case incurred
= Σ (chg(case)) + Σ CY paid
Need to find chg(case)
AY |
CY-1 case |
CY case |
chg(case) |
CY-2 |
---- |
---- |
---- |
AY-1 |
---- |
---- |
---- |
AY |
---- |
---- |
---- |
|
|
sum → |
---- |
Need to find paid in current CY
AY |
CY paid |
AY-2 |
---- |
AY-1 |
---- |
AY |
---- |
sum → |
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