Sahasrabuddhe

Question 1

General Steps to adjust CDFs from “base layer” to another layer

Answer 1

• exposure period and development period trend adjustment to get trend factor for each cell
• backup from the latest development period to each development period by factor (trendw,d)/(trend,d)
• get the claim size parameter theta for the latest development period (given)
• back the unlimited triangle into

Question 2

Why do we want to adjust back to “base layer”?

Answer 2

the paper assumes that only the base layer have enough credibility to have LDF