Difference between revisions of "Friedland11.FreqSev"

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! style='width: 175px;' | reference !! style='width: 175px;' | part (a) !! style='width: 175px;' | part (b) !! style='width: 175px;' | part (c) !! part (d)
 
! style='width: 175px;' | reference !! style='width: 175px;' | part (a) !! style='width: 175px;' | part (b) !! style='width: 175px;' | part (c) !! part (d)
  
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|| [https://www.battleacts5.ca/pdf/Exam_(2019_2-Fall)/(2019_2-Fall)_(20).pdf <span style='font-size: 12px; background-color: yellow; border: solid; border-width: 1px; border-radius: 5px; padding: 2px 5px 2px 5px; margin: 5px;'>E</span>] <span style="color: red;">'''(2019.Fall #20)'''</span>
 
|| [https://www.battleacts5.ca/pdf/Exam_(2019_2-Fall)/(2019_2-Fall)_(20).pdf <span style='font-size: 12px; background-color: yellow; border: solid; border-width: 1px; border-radius: 5px; padding: 2px 5px 2px 5px; margin: 5px;'>E</span>] <span style="color: red;">'''(2019.Fall #20)'''</span>
 
|| <span style="color: blue;">'''disposal rate method:'''</span> <br> - unpaid
 
|| <span style="color: blue;">'''disposal rate method:'''</span> <br> - unpaid
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|| [https://www.battleacts5.ca/pdf/Exam_(2019_1-Spring)/(2019_1-Spring)_(15).pdf <span style='font-size: 12px; background-color: yellow; border: solid; border-width: 1px; border-radius: 5px; padding: 2px 5px 2px 5px; margin: 5px;'>E</span>] <span style='color: red;'>'''(2019.Spring #15)'''</span>
 
|| [https://www.battleacts5.ca/pdf/Exam_(2019_1-Spring)/(2019_1-Spring)_(15).pdf <span style='font-size: 12px; background-color: yellow; border: solid; border-width: 1px; border-radius: 5px; padding: 2px 5px 2px 5px; margin: 5px;'>E</span>] <span style='color: red;'>'''(2019.Spring #15)'''</span>
 
|| '''unpaid claims''': <br> - freq-sev method
 
|| '''unpaid claims''': <br> - freq-sev method
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|| [https://www.battleacts5.ca/pdf/Exam_(2019_1-Spring)/(2019_1-Spring)_(20).pdf <span style='font-size: 12px; background-color: yellow; border: solid; border-width: 1px; border-radius: 5px; padding: 2px 5px 2px 5px; margin: 5px;'>E</span>] <span style='color: red;'>'''(2019.Spring #20)'''</span>
 
|| [https://www.battleacts5.ca/pdf/Exam_(2019_1-Spring)/(2019_1-Spring)_(20).pdf <span style='font-size: 12px; background-color: yellow; border: solid; border-width: 1px; border-radius: 5px; padding: 2px 5px 2px 5px; margin: 5px;'>E</span>] <span style='color: red;'>'''(2019.Spring #20)'''</span>
 
|| '''tail severity''': <br> - provide an estimate
 
|| '''tail severity''': <br> - provide an estimate
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|| [https://www.battleacts5.ca/pdf/Exam_(2018_1-Spring)/(2018_1-Spring)_(18).pdf <span style='font-size: 12px; background-color: yellow; border: solid; border-width: 1px; border-radius: 5px; padding: 2px 5px 2px 5px; margin: 5px;'>E</span>] <span style='color: red;'>'''(2018.Spring #18)'''</span>
 
|| [https://www.battleacts5.ca/pdf/Exam_(2018_1-Spring)/(2018_1-Spring)_(18).pdf <span style='font-size: 12px; background-color: yellow; border: solid; border-width: 1px; border-radius: 5px; padding: 2px 5px 2px 5px; margin: 5px;'>E</span>] <span style='color: red;'>'''(2018.Spring #18)'''</span>
 
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|| [https://www.battleacts5.ca/pdf/Exam_(2017_2-Fall)/(2017_2-Fall)_(23).pdf <span style='font-size: 12px; background-color: yellow; border: solid; border-width: 1px; border-radius: 5px; padding: 2px 5px 2px 5px; margin: 5px;'>E</span>] <span style='color: red;'>'''(2017.Fall #23)'''</span>
 
|| [https://www.battleacts5.ca/pdf/Exam_(2017_2-Fall)/(2017_2-Fall)_(23).pdf <span style='font-size: 12px; background-color: yellow; border: solid; border-width: 1px; border-radius: 5px; padding: 2px 5px 2px 5px; margin: 5px;'>E</span>] <span style='color: red;'>'''(2017.Fall #23)'''</span>
 
|| '''tail severity''': <br> - provide an estimate
 
|| '''tail severity''': <br> - provide an estimate
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|| [https://www.battleacts5.ca/pdf/Exam_(2017_1-Spring)/(2017_1-Spring)_(17).pdf <span style='font-size: 12px; background-color: yellow; border: solid; border-width: 1px; border-radius: 5px; padding: 2px 5px 2px 5px; margin: 5px;'>E</span>] <span style='color: red;'>'''(2017.Spring #17)'''</span>
 
|| [https://www.battleacts5.ca/pdf/Exam_(2017_1-Spring)/(2017_1-Spring)_(17).pdf <span style='font-size: 12px; background-color: yellow; border: solid; border-width: 1px; border-radius: 5px; padding: 2px 5px 2px 5px; margin: 5px;'>E</span>] <span style='color: red;'>'''(2017.Spring #17)'''</span>
 
|| '''ultimate''': <br> - Freq-Sev method
 
|| '''ultimate''': <br> - Freq-Sev method
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|| [https://www.battleacts5.ca/pdf/Exam_(2016_2-Fall)/(2016_2-Fall)_(22).pdf <span style='font-size: 12px; background-color: yellow; border: solid; border-width: 1px; border-radius: 5px; padding: 2px 5px 2px 5px; margin: 5px;'>E</span>] <span style='color: red;'>'''(2016.Fall #22)'''</span>
 
|| [https://www.battleacts5.ca/pdf/Exam_(2016_2-Fall)/(2016_2-Fall)_(22).pdf <span style='font-size: 12px; background-color: yellow; border: solid; border-width: 1px; border-radius: 5px; padding: 2px 5px 2px 5px; margin: 5px;'>E</span>] <span style='color: red;'>'''(2016.Fall #22)'''</span>
 
|| '''settlement rate change''': <br> - provide evidence
 
|| '''settlement rate change''': <br> - provide evidence
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|| [https://www.battleacts5.ca/pdf/Exam_(2016_1-Spring)/(2016_1-Spring)_(19).pdf <span style='font-size: 12px; background-color: yellow; border: solid; border-width: 1px; border-radius: 5px; padding: 2px 5px 2px 5px; margin: 5px;'>E</span>] <span style='color: red;'>'''(2016.Spring #19)'''</span>
 
|| [https://www.battleacts5.ca/pdf/Exam_(2016_1-Spring)/(2016_1-Spring)_(19).pdf <span style='font-size: 12px; background-color: yellow; border: solid; border-width: 1px; border-radius: 5px; padding: 2px 5px 2px 5px; margin: 5px;'>E</span>] <span style='color: red;'>'''(2016.Spring #19)'''</span>
 
|| '''does Freq-Sev work?''': <br> - long-tailed lines
 
|| '''does Freq-Sev work?''': <br> - long-tailed lines
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|| '''does Freq-Sev work?''': <br> - change in case reserving
 
|| '''does Freq-Sev work?''': <br> - change in case reserving
  
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|| [https://www.battleacts5.ca/pdf/Exam_(2015_2-Fall)/(2015_2-Fall)_(20).pdf <span style='font-size: 12px; background-color: yellow; border: solid; border-width: 1px; border-radius: 5px; padding: 2px 5px 2px 5px; margin: 5px;'>E</span>] <span style='color: red;'>'''(2015.Fall #20)'''</span>
 
|| [https://www.battleacts5.ca/pdf/Exam_(2015_2-Fall)/(2015_2-Fall)_(20).pdf <span style='font-size: 12px; background-color: yellow; border: solid; border-width: 1px; border-radius: 5px; padding: 2px 5px 2px 5px; margin: 5px;'>E</span>] <span style='color: red;'>'''(2015.Fall #20)'''</span>
 
|| '''does Freq-Sev work?''': <br> - general liability
 
|| '''does Freq-Sev work?''': <br> - general liability
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|| [https://www.battleacts5.ca/pdf/Exam_(2015_1-Spring)/(2015_1-Spring)_(21).pdf <span style='font-size: 12px; background-color: yellow; border: solid; border-width: 1px; border-radius: 5px; padding: 2px 5px 2px 5px; margin: 5px;'>E</span>] <span style='color: red;'>'''(2015.Spring #21)'''</span>
 
|| [https://www.battleacts5.ca/pdf/Exam_(2015_1-Spring)/(2015_1-Spring)_(21).pdf <span style='font-size: 12px; background-color: yellow; border: solid; border-width: 1px; border-radius: 5px; padding: 2px 5px 2px 5px; margin: 5px;'>E</span>] <span style='color: red;'>'''(2015.Spring #21)'''</span>
 
|| <span style="color: blue;">'''disposal rate method:'''</span> <br> - ultimate
 
|| <span style="color: blue;">'''disposal rate method:'''</span> <br> - ultimate
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|| [https://www.battleacts5.ca/pdf/Exam_(2014_2-Fall)/(2014_2-Fall)_(17).pdf <span style='font-size: 12px; background-color: yellow; border: solid; border-width: 1px; border-radius: 5px; padding: 2px 5px 2px 5px; margin: 5px;'>E</span>] <span style='color: red;'>'''(2014.Fall #17)'''</span>
 
|| [https://www.battleacts5.ca/pdf/Exam_(2014_2-Fall)/(2014_2-Fall)_(17).pdf <span style='font-size: 12px; background-color: yellow; border: solid; border-width: 1px; border-radius: 5px; padding: 2px 5px 2px 5px; margin: 5px;'>E</span>] <span style='color: red;'>'''(2014.Fall #17)'''</span>
 
|| <span style="color: blue;">'''disposal rate method:'''</span> <br> - unpaid
 
|| <span style="color: blue;">'''disposal rate method:'''</span> <br> - unpaid
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|| [https://www.battleacts5.ca/pdf/Exam_(2014_1-Spring)/(2014_1-Spring)_(16).pdf <span style='font-size: 12px; background-color: yellow; border: solid; border-width: 1px; border-radius: 5px; padding: 2px 5px 2px 5px; margin: 5px;'>E</span>] <span style='color: red;'>'''(2014.Spring #16)'''</span>
 
|| [https://www.battleacts5.ca/pdf/Exam_(2014_1-Spring)/(2014_1-Spring)_(16).pdf <span style='font-size: 12px; background-color: yellow; border: solid; border-width: 1px; border-radius: 5px; padding: 2px 5px 2px 5px; margin: 5px;'>E</span>] <span style='color: red;'>'''(2014.Spring #16)'''</span>
 
|| '''ultimate counts''': <br> - reins. attachment points
 
|| '''ultimate counts''': <br> - reins. attachment points
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|| [https://www.battleacts5.ca/pdf/Exam_(2013_2-Fall)/(2013_2-Fall)_(16).pdf <span style='font-size: 12px; background-color: yellow; border: solid; border-width: 1px; border-radius: 5px; padding: 2px 5px 2px 5px; margin: 5px;'>E</span>] <span style='color: red;'>'''(2013.Fall #16)'''</span>
 
|| [https://www.battleacts5.ca/pdf/Exam_(2013_2-Fall)/(2013_2-Fall)_(16).pdf <span style='font-size: 12px; background-color: yellow; border: solid; border-width: 1px; border-radius: 5px; padding: 2px 5px 2px 5px; margin: 5px;'>E</span>] <span style='color: red;'>'''(2013.Fall #16)'''</span>
 
|| '''IBNR''': <br> - Freq-Sev method
 
|| '''IBNR''': <br> - Freq-Sev method

Revision as of 16:12, 18 July 2020

Reading: Friedland, J.F., Estimating Unpaid Claims Using Basic Techniques, Casualty Actuarial Society, Third Version, July 2010. The Appendices are excluded.

Chapter 11: Frequency-Severity Methods

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Based on past exams, the main things you need to know (in rough order of importance) are:

  • fact A...
  • disposal rate method - calculate ultimate/unpaid amounts with trending and adjustments for court decisions
reference part (a) part (b) part (c) part (d)
E (2019.Fall #20) disposal rate method:
- unpaid 		Freq/Sev vs Paid Devlpt:
- why Freq/Sev better
E (2019.Spring #15) unpaid claims:
- freq-sev method 		identify scenario:
- rptd claims down
E (2019.Spring #20) tail severity:
- provide an estimate 		tail severity:
- selection of maturity age
E (2018.Spring #18)
E (2017.Fall #18) ultimate:
- Freq-Sev method 		trend in counts:
- explain 		seasonality:
- suggest diagnostic
E (2017.Fall #20) ultimate frequency:
- select & justify 		ultimate severity:
- select & justify 		ultimate:
- B-F & Freq-Sev methods
E (2017.Fall #23) tail severity:
- provide an estimate 		tail severity:
- selection of maturity age
E (2017.Spring #16) IBNR:
- Freq-Sev method 		ads/disads:
- Freq-Sev method
E (2017.Spring #17) ultimate:
- Freq-Sev method
E (2016.Fall #20) disposal rates - good:
- Freq-Sev method 		disposal rates - not good:
- Freq-Sev method 		adjustments:
- to Freq-Sev method
E (2016.Fall #22) settlement rate change:
- provide evidence 		ultimate:
- Freq-Sev method
E (2016.Spring #19) does Freq-Sev work?:
- long-tailed lines 		does Freq-Sev work?:
- many reopened claims 		does Freq-Sev work?:
- spike in high-severity clms 		does Freq-Sev work?:
- change in case reserving
E (2015.Fall #20) does Freq-Sev work?:
- general liability 		does Freq-Sev work?:
- reduced deductibles 		unpaid claim estimate:
- suggest improvement
E (2015.Spring #20) ultimate:
- use several methods 		do methods work:
- discuss
E (2015.Spring #21) disposal rate method:
- ultimate 		disposal rate method:
- adjust for severity spike
E (2014.Fall #16) estimate of counts:
- assess reasonableness
E (2014.Fall #17) disposal rate method:
- unpaid 		legislative reform:
- assess impact
E (2014.Spring #16) ultimate counts:
- reins. attachment points
E (2013.Fall #16) IBNR:
- Freq-Sev method
E (2013.Spring #19) IBNR:
- Freq-Sev method

In Plain English!

POP QUIZ ANSWERS

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