metastate
10-02-2009, 08:51 AM
Do you think the answer they gave is right?
I think according to Clark, the XSLDF should appled to the trended XS losses (ie., trend the losses, then apply AP and limit, and at last apply XSLDF). But in the answer, the LDF applied to the trended losses and then the AP and limit applied trended ultimate losses. It is the opposite way.
I think according to Clark, the XSLDF should appled to the trended XS losses (ie., trend the losses, then apply AP and limit, and at last apply XSLDF). But in the answer, the LDF applied to the trended losses and then the AP and limit applied trended ultimate losses. It is the opposite way.