IRIS 5 - recalculation

In the IRIS examples for the Excel practice problems on BA, if IRIS 11 is unusual and we have to recalculate IRIS 5, solution just removes all prior year information from the calculation (losses, dividends, LAE etc.), so ratio turns into a 1-yr combined operating ratio. Is this the correct way to recalculate IRIS 5? I was under the impression we just wanted to remove the 1-yr development, and so I was only subtracting the 1-yr loss development used in the IRIS 11 calculation from the losses in the IRIS 5 calculation.

Comments

  • Yes, I forgot to go back and change that. Thanks for pointing it out. I've changed it to remove the prior year development that was used in calculating IRIS 11.

    I almost didn't even include an example where you had recalculate IRIS 5 due to an unusual value for IRIS 11 because the text was not very clear about what you were supposed to do. (The text has no examples and as far as I can tell, there were no old exam problems where you had to do that either.)

Sign In or Register to comment.