Chief Actuary The Best Estimate Loss Ratio Assumptions Case Study - Accounting Assignment Help

Assignment Task

The Best Estimate Loss Ratio Assumptions 

You are assisting the Chief Actuary to set the Best Estimate Loss Ratio assumptions for two lines of business: Death and TPD.  TPD is “Total and Permanent Disablement” benefit.  A TPD claim is admitted when a policyholder is permanently unable ever to work.  

Loss Ratio is defined as ‘Incurred Claim Cost divided by Earned Premium’.  

Incurred Claim cost is defined as actual Claims Admitted plus an allowance for Claims Incurred but Not Reported (IBNR).

You were provided the amount of Earned Premium, Claims Incurred, and Number of Claims incurred from 2011 to 2020.  

Task:

Prepare your recommendation to the Chief Actuary for the Best Estimate Loss Ratio assumptions. 

The recommendation should be limited to two pages.  It should include:

• Recommended Best Estimate Loss Ratio assumptions, for Death and TPD separately.

• A summary of how the above assumption is derived, including what data is used and any critical assumptions that you have made.  This should include observations of the data used and potential data limitations.

• Considerations and points that should be further investigated that may provide important additional data for determining the best estimate loss ratio.

• Explain in your own word the concept of ‘Incurred but not Reported’ (IBNR) claims and why it needs to be allowed in the Loss Ratio assumption

• Use charts and/or tables where applicable to demonstrate analysis results visually.

This Accounting Assignment has been solved by our Accounting Experts at My Uni Paper. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing style.

Be it a used or new solution, the quality of the work submitted by our assignment Experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.