WC Loss Development - Clarification

gcuzzi@colognere.com
Tue, 17 Mar 1998 11:39:21 -0500

Sorry, I think I got it backwards. Yes, of course, the limits, either
$10,000 or $25,000, are detrended to the accident dates of the losses. But
that is just an inflation adjustment. It still sounds like you may have
negative development going on.

To: casnet
cc: casnet (bcc: Gregory A. Cuzzi)
From: jenbram@unicoverre.com
Date: 03/16/98 04:14:07 PM
Subject: WC Loss Development - Clarification

Just another quick clarification:
For accident year 1997, the losses are capped at $10,000 and then are
placed into development triangles.
For accident year 1990, the losses are capped at $10,000/(1.05^7)=$7,107
and then placed into development triangles.
After selecting the age-to-age factors, the Age-to-Ult. factors for the
losses limited to $10,000 were higher than the losses limited to $25,000.
Both used the same inflation index of 5%.
Jennifer Bramschreiber
Unicover Re

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