analysis with direct and net data in schedule P

[Noonien Soong]

Parts 2-4 of the schedule P are Net Loss and DCC amounts, such that they are net of reinsurance.

Part 5, all three sections, is on a direct and assumed basis.

So any analysis of incremental or closed claims severity, or average open claim case reserve is distorted right?

Are there meaningful ways to combine Parts 2-4 and Part 5? I'm thinking maybe if there has never been reinsurance nor assumed business, then direct = net. Alternatively, if there was a quote share style reinsurance, then actual severities wouldn't be accurate, but directional changes in them would have meaning.

Am i missing something?

Humanly,

Noonien Soong

[Vorian Atreides]

What is the goal of your analysis of claim severity and/or case reserve? That is, what are you hoping to learn or find out?

[Noonien Soong]

Assess any trends in claim severities. Severities of open claims vs closed claims by accident and calendar year. See if and just how much severities are exceeding an external index(like something from the bureao of labor statistics for example.)

[CuriousGeorge]

Is this your company or someone else?

One workaround is to rebuild Parts 2-4 on a direct only basis, using multiple Part 1 reports. Or, if it is your own company, just ask for the direct triangles.