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
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
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
4
Q
Schedule P Part 5
A
claim count triangles:
- claims closed with payment
- claims outstanding
- claims reported
5
Q
Schedule P Part 6
A
gross and ceded earned premium triangles
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