Excel practice Taxes 2

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in Klann.ReinsComm

Possible mistake: The excel taxes 2 states reserves and ultimate are "direct(net)" but the solution treats these as gross. Also, the real exam problem this is modelled off of, 2017.S.26, just says "Direct".

Comments

  • grahamgraham

    Yes, you're right. I think the solution method is fine, but the given information was not labelled correctly. I'm not sure why I put "net" in parentheses after "direct". I have changed it to read:

    • primary insurer RESERVE direct (gross)
    • primary insurer ULTIMATE direct (gross)

    Just as a side note: Sometimes direct and gross are used to mean the same thing, although technically they are not the same if there is non-zero assumed business. In this context, the 3 different "types" of losses are:

    • direct, assumed, ceded

    Then,

    • gross = direct + assumed
    • net = direct + assumed - ceded

    In this exam problem, they give you "direct" losses, but in my solution, I labelled these as "gross" because I thought that was "more correct".

    Anyway, when I looked at the problem, I also noticed that I had not paste-valued the randomized inputs, so the numbers in the question version of the spreadsheet didn't match the numbers in the answer version. (And the numbers would change every time the sheet was recalculated.)

    So that is definitely worth a mug! (If you want one.) Just reply to my forum message with your address. (Click the envelope icon under your name in the top left of this page.) Otherwise, I'll give you a shout-out. :-)

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