SOA GIADVGeneral Insurance — Advanced Topics

Fellowship (FSA)

4 hours·8–10 written-answer questions·≈400 study hours

Score 0/0 · 6 MC

GIADV · Q1
Multiple choice
Stochastic reserving & reserve ranges
A bootstrap reserving model produces a mean unpaid claim estimate of 5,000 and a standard error of 1,000. Calculate the coefficient of variation of the reserve estimate.
GIADV · Q2
Written answer
Stochastic reserving & reserve ranges
Explain the difference between the process variance and parameter variance components of reserve variability, and why both are needed to construct a defensible reserve range.