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3. An insurance company issues annual policies, all of which are effective October 1st of...

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3. An insurance company issues annual policies, all of which are effective October 1st of each year. You are given the information below: Claim Number 1 2 Date of Reserve as of Paid During Reserve as of Accident 31/12/2018 2019 2020 31/12/2019 31/12/2020 15/4/2017 $50,000 $0 SO $50,000 $50,000 1/8/2019 0 50,000 10,000 100,000 100,000 2/12/2019 0 0 5,000 200,000 150,000 5/1/2018 150,000 25,000 0 125,000 125,000 15/11/2018 600,000 500,000 1,000,000 1,000,000 0 1/2/2020 0 0 0 0 100,000 3 4 5 6 Unearned premium as of January 1st, 2019: $600,000 - Written premium on issued policies in 2019: $1,500,000 Calculate: (a) 2019 calendar year incurred-to-earned claim ratio evaluated as of December 31st, 2020. [6 marks] 7 2 (b) 2019 accident year claims evaluated as of December 31st, 2020. [3 marks] (c) 2019 policy year earned-to-incurred claim ratio evaluated as of December 31, 2020. Assume policy year 2019 runs from 1/10/2019 through 30/9/2020. [3 marks]

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