Mack Benktander

Question 1

Ult BF

Answer 1

Ck + qk * U0

Question 2

Ult Benk from BF

Answer 2

Ck + qk * UBF

Question 3

Ult Benk as Cred Weight

Answer 3

pk * UCL + qk * UBF

Question 4

Reserve Benk as Cred Weight

Answer 4

pk * RCL + qk * RBF

Question 5

Infinite iterations go toward

Answer 5

Chainladder method

Question 6

Iteration notation R0 represents

Answer 6

The BF reserve

Question 7

Advantages of the Benktander Method

Answer 7

1. Outperforms the BF and CL methods in many circumstances
2. The MSE of the Benk reserve is almost as small as that of the optimal credibility reserve