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  #3141  
Old 10-12-2017, 03:24 PM
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Quote:
Originally Posted by Polak View Post
Now that you state this is suddenly sounds familiar from 6. Even though cmoibenlepro's question caused me read the source on this topic and I was already staring right at that list in Clark.

Guess I should add a couple notes about this to my outline.
If this was already tested in 6, I don't see why they would test again on 8 regardless of whether or not it was in Clark.
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Old 10-12-2017, 03:38 PM
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I think it falls at about the level of basket aggregate as far as importance.

Know that it exists, and a few characteristics:
multiyear
narrower band of min/max premium (hence the "is it reinsurance" issue)
risk sharing mechanism
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  #3143  
Old 10-12-2017, 03:55 PM
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I think it falls at about the level of basket aggregate as far as importance.

Know that it exists, and a few characteristics:
multiyear
narrower band of min/max premium (hence the "is it reinsurance" issue)
risk sharing mechanism
Love me a basket full of aggs.
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  #3144  
Old 10-12-2017, 04:04 PM
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This is pretty cool thanks for sharing
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ASM does not have a discussion of stimulation, but considering how boring the manual is, maybe it would be a good idea.
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  #3145  
Old 10-12-2017, 04:04 PM
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but it has distracted me from studying
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ASM does not have a discussion of stimulation, but considering how boring the manual is, maybe it would be a good idea.
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  #3146  
Old 10-12-2017, 04:07 PM
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but it has distracted me from studying
At this point anything distracts me from studying.
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Sometimes, if I sit next to an attractive woman on public transportation, I pretend she's my gf, but she's not talking to me because we got in a fight.
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  #3147  
Old 10-12-2017, 04:08 PM
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starting clark tonight
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ASM does not have a discussion of stimulation, but considering how boring the manual is, maybe it would be a good idea.
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  #3148  
Old 10-12-2017, 05:05 PM
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gl
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  #3149  
Old 10-12-2017, 06:29 PM
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Ohhhh F from BF was criminal? Interesting
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  #3150  
Old 10-12-2017, 06:38 PM
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2014 Q20 part b answer:
Quote:
Suppose the attachment point was $2M. Then a $4M payment in 2004 would be from a $6M ground-up loss, but if we assumed the same limit/attachment point as today we would have assumed it came from a $7M ground-up loss. Therefore, the trended claim would be overstated.
Lol wut? Why the hell would you assume an umbrella policy from 10 years ago had the same attachment point and limit as today? That's stupid. I guess if you're just summing up a bunch of losses without thinking about it yeah, but if you're calculating a trend wouldn't you set up your program to add the attachment point to the loss to begin with? This seems like a non-issue.

The answer should be related to the limits. The problem is that if limits were lower in the past, you won't pick up losses above that limit, so you're looking at losses from a lower limit and comparing them to losses with a higher limit, so trend would appear higher than it really is and the trend factor will be overstated. However, since you're possibly not picking up the full ground-up loss, it's possible you're underestimating the claims value today. So if the claim is below the historical limit you're likely overstating it due to an overstated trend factor, but if it's above the historical limit you're likely understating it due to applying the trend to a loss that's limited.
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