IFRS17 Practice Problem 2 Issue year
Hi, could you help me understand how do we derive issue year from accident year?
Would this be something similar to the average earned date from exam 5?
Thanks!
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Hi, could you help me understand how do we derive issue year from accident year?
Would this be something similar to the average earned date from exam 5?
Thanks!
Comments
Did you look at the formulas? It is basically just taking an average of the current and following Accident Year. In other words, Issue Year (x) = (AY (x) + AY(x+1))/2. This is because you expect in a given issue year that half of the claims would come in this year and the other half in the following year.