Schedule P Flashcards

1
Q

limitations of assessing reserve adequacy with Schedule P data (6)

A
  • only 10 years of data may not be enough information for long-tailed lines
  • loss and DCC are combined and may mask trends in each component
  • various allocations are subject to interpretation
  • internal pooling or reinsurance arrangements may not be obvious
  • data includes business from voluntary and involuntary pools
  • commutations will distort reserves
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2
Q

Schedule P Part 1

A

summarizes loss and LAE as of year end on gross and ceded bases; net of sal/sub, net of tabular discount, gross of non-tabular discount until last columns

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3
Q

Schedule P Part 2-4

A

loss and LAE triangles, net of reinsurance and sal/sub, gross of all discounting

  • Part 2: (ultimate) incurred
  • Part 3: paid
  • Part 4: bulk and IBNR
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4
Q

Schedule P Part 5

A

claim count triangles:

  • claims closed with payment
  • claims outstanding
  • claims reported
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5
Q

Schedule P Part 6

A

gross and ceded earned premium triangles

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6
Q

how intercompany pooling is treated

A
  • in Schedule P, direct plus assumed and ceded business is reported on a pooled basis
  • other schedules and exhibits treat intercompany pooling as a typical reinsurance agreement, essentially double counting
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