A.5 Claims Data

Question 1

4 ways to aggregate claims metrics over time

Answer 1

• Calendar year (CY): This considers all transactions with transaction dates during the year. Calendar year metrics are fixed once the year is over.
• Accident year (AY): This considers all transactions as of a given valuation date on claims with an accident date during the year.
• Report year (RY): This considers all transactions as of a given valuation date on claims with a report date during the year.
• Policy year (PY): This considers all transactions as of a given valuation date on claims coming from policies with a policy effective date during the year.

Question 2

Formula for reported losses

Answer 2

Reported Losses = Paid Losses + Change in Case Reserves

Also known as case incurred losses.