IAI SP7 Practice Questions - IAI SP7 General Insurance Reserving And Capital Modelling Exam

Access More Questions

In the basic chain ladder method, what does a development factor (age-to-age or link ratio) of 1.25 between development years 1 and 2 indicate?

Cumulative claims at development year 2 are expected to be 25% higher than at development year 1 Ultimate claims are 25% of reported claims 25% of claims are settled in development year 2 The reserve should be reduced by 25%

Correct Answer:

Cumulative claims at development year 2 are expected to be 25% higher than at development year 1

Access more questions from this quiz

Continue to IAI SP7 Practice Questions - IAI SP7 General Insurance Reserving and Capital Modelling Exam for more practice questions and the full quiz experience.

Access More Questions