Parts2-4

Not sure if this has been asked before but I noticed that Parts2-4 contain Loss & DCC reserves. Is it then safe to assume that these do not include AO LAE expenses?

Comments

  • Yes, correct. There are special techniques to triangulate AO, and they are not used in Schedule P.

  • Makes sense, thanks! And I assume a reason is because it is difficult to allocate AO expenses to accident years or to line of business?

  • Correct. Sure, good luck.

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