IRIS 5 recalculation
How do we recalculate IRIS 5 if IRIS 11 >20%? " For an insurer with a result outside the usual range on Ratio 11, the analyst
should recalculate this ratio after eliminating the prior year development to obtain a more
accurate picture of the insurer’s current operating position. "
Does "eliminating the prior year development" in the above sentence just mean subtract the numerator of IRIS 11 from the numerator of the loss and alae ratio?
Comments
That is what I would do. (Unfortunately there are no examples in the IRIS source text to demonstrate this.)
Thanks