Reply To: Reserve

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July 1, 2019 at 11:33 am #24762
Mayank Goyal
Keymaster

    Interest is a very basic factor which is not considered generally in Reserving unless the company is specifically using inflation adjusted chain ladder, they are implictly assumed to be in it and continue with the same implicit rate, as per CL assumptions.

    However, in later years, if ACPC (frequency severity) is used, average claims are generally inflated at an experienced rate of inflation. So there comes no scene of interest.

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