mini Battlequiz 2 - how to calculate ceded reserves before commutation?
In the calculation question, step 2 states to calculate net ultimate after commutation = (net paid after commutation) + (net reserve before commutation) + (ceded reserve before commutation)
However, if we are given ceded paid losses before commutation and net reserves before commutation, how would one calculate the value for "ceded reserve before commutation"?
Comments
Which question in mini BattleQuiz 2 are you referring to?
Nevermind on my question - after noticing there was an Excel practice problems section I was able to find the solution on there.
I was referring originally to question 7, and the answer was to use the equation "ceded reserve =gross reserve * reinsurance quota %" to calculate the ceded reserve before commutation directly from the gross reserve before commutation triangle.
Ok then, good.