CAT Losses and Reserves

[Calculusjunkie]

Hi everyone,

I am working on a project for CAT losses.  I am trying to understand how to handle the triangles of losses that are reclassified over time. For example losses that happened back in 2016 were not identified as CAT, in the current reporting period they have been reclassified as belonging to a CAT event from 2016. Does anyone have any pointers as how to handle the triangles, do I reflect the change in the current valuation period? Or do I have to update all the previous valuation periods in the triangles to be able to reflect the change?

thanks for your wisdom!

[Sherwin]

If the CAT loss was significant, I suggest that you update all the previous cells in the triangle. The CAT amount may distort the triangle.

[Author]

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