Hurlimann

Question 1

Three differences between Hurlimann and Benktander

Answer 1

1. Hurlimann based on full triangle, Benktander based on one single year
2. Hurlimann requires measure of exposure
3. Hurlimann’s method relies on loss ratios

Question 2

One similarity between Hurlimann and Benktander

Answer 2

Both credibility weight extreme positions

Question 3

One advantage of collective loss ratio reserve over BF reserve

Answer 3

Different actuaries always come to the same results (provided they used same premiums)

Question 4

Why t = sqrt(p) is appealing choice when calculating the optimal credibility weights

Answer 4

Yields smallest credibility weights for individual loss reserves