Reporting convention vs Segmentation
Hello,
In this section it was discussed that schedule P is segmented by Line of Business and Accident year; however, the text and one of the questions asks about the reporting convention of different kinds of policies. Wouldn't this mean that schedule P is not always segmented by AY and it depends on the type of policy (example discovery year for surety)?
Thank you
Comments
Yes, you're right. Note that the column header for the years column in Sch P is "Years in Which Premiums Were Earned and Losses Were Incurred." Losses are incurred according to the type of policy. For example, for Other Liab - Claims-Made line, losses are incurred in the year they are reported. So, the years there represent Report Years.