Vet reserving data and analyses, catching errors and results that fail a reasonableness check.
Free CAS Exam 5 (Basic Ratemaking and Reserving) lesson in Estimating Claim Liabilities. 16 min read, ~2,338 words.
Vetting has two layers: validate the input data, then test whether the results pass a reasonableness check. Verify data four ways: reconcile to the financial statements, compare against the prior study, test reasonableness, and confirm each field's definition. Cumulative paid cannot decrease and paid cannot exceed reported, but cumulative reported...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- B2
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