Parts used for Reserve Adequacy
The text and past examiner's reports list parts 2 & 5 as needed to analyse reserve adequacy.
But e.g. 2018 F#13 give lots of other methods:
(part 2 - part 3 - part 4) / part 5
Or part 3 / (part 2 - part 4)
Are all of these acceptable answers? e.g. 2015 S#14.d)
Comments
The first expression above is average case reserves. The second expression is paid-to-incurred ratio. You look at the trends in these items in the triangular setting to get a notion of reserve adequacy.
I guess I was wondering why we say that parts 2 & 5 are required to analyse reserve adequacy instead of e.g. parts 2,3,4?
If you see it mentioned in that way somewhere, it s in error there.
This is the main place I was thinking of in the wiki:
Ok, thanks. I've edited that to read Part 2,3,4,5: