CIA Runoff

Undiscounted Basis
Emergence in t with respect to accident years t-1 and prior
- = (Ultimate amounts estimated at t-1) – (ultimate amounts estimated at t)
- = (Claim liabilities at t-1) – (Paid during t) – (Claim liabilities at t)
How to account for time value of money
- Excess (deficiency)
- = (Disc liab at t-1) - [(Paid during t) + (Disc liab at t) - (II in CY t on unpaid cliams)]
- = (Disc liab at t-1) - PV at t-1 of [(Paid during t) + (Disc liab at t)]
- Discount terms at time t to t-1
- Subtract II during year t on assets supporting liabilities
II attributable to policy liabilities, II attributable to assets backing the net premium liabilities
- II attributable to policy liabilities = selected yield rate * average of the starting and ending values of
- - + net unpaid claims
  - + net unearned premium
  - – gross DPAC
  - + premium deficiency provisions
  - + unearned commissions
  - – agents, brokers and policyholders receivables
  - – instalment premiums
  II attributable to assets backing the net premium liabilities can be calculated similarly
- The investable assets =
  - net unearned premium
  - + premium deficiency
  - + unearned commissions
  - - gross DPAC
  - - agents, brokers and policyholders’ receivables
  - - instalment premiums.

Author

youngt

339157

Card Set

CIA Runoff

Description

CIA Runoff (Evaluation of the Runoff when Liabilities are Discounted in accord with AAP)

Updated

2018-04-24T15:15:28Z

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