RE: Berquist/Sherman 1997 essay question, Reserving method #3

Sce, Michael ( (no email) )
Fri, 18 Sep 1998 08:48:45 -0400

This is probably the hardest material to understand, only because the
documentation is so poor. I'll make a try at it.

Step 1> Method III is column-wise on incremental paid severities. So,
change cumulative paids to incremental.

Step 2> Divide through by number of claims to get incremental
severities. (getting a little funky)

Step 3> Trend to year in question, 1996. Take average of all 1996
indications by age valuation.

Step 4> Multiply by 1996 ultimate claims. Add to get total reserves.

All his methods are column-wise on either paid LDFs or paid severities
(cumulative or incremental). Weightings are different where the base
calculations are the same (LDFs/Pd Sevs). =20

> -----Original Message-----
> From: Peter Cooper [SMTP:scmakes3@idirect.com]
> Sent: Saturday, September 12, 1998 5:34 PM
> To: studygroup7@lists.casact.org
> Subject: Berquist/Sherman 1997 essay question, Reserving method
> #3
>=20
> I'm having problems with the above question and the CAS does'nt help =
a
> whole lot either.
> =A0
> Wondering if anybody has a better solution or understands the subject
> better than the CAS.
> =A0
> Thanks