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Week 2 Study Plan

Overview

This week, we will cover the following topics:

  • Module 2, which is concerned with the calculation of IBNR claim counts.
  • There are some slides with the main elements, but a major component of the module is with a spreadsheet, which can be downloaded here

See also detailed learning outcomes of 1.2 (“Rational choice theory”) and 5.2 (“Liability valuations / Run-off triangles”) of the CM2 syllabus here.

Main references and lectures

Module 2: Reserving Claim Counts

Read: Module 2: Reserving Claim Counts

Annotated slides: UG/PG

Watch: refer to your lecture recording under “Lecture Capture” (UG/PG).

Additional preparation and resources

Mandatory

  1. Chapter 2 of Taylor () (for Module 2)
  2. Spreadsheet Module2.xlsx

Tutorials

Please let us know of any mistake or required update on Ed.

Tutorial materials

Tutorial exercises have been especially selected as more advanced exercises facilitating revisions and discussions during the face to face tutorials.

Solutions will only be released in the morning of the tutorials, to encourage students to have a go by themselves prior to the tutorial, but still allowing them to have something to annotate during the tutorial.

Please have a look at the Week 2 tutorial problem set and associated spreadsheets for this week before attending tutorials. The tutors will go through the questions with you, and you are encouraged to ask questions during tutorials.

Extra Exercises

Extra exercises, to be completed after the tutorial, and with solutions available straight away. It is recommended to attempt the questions before looking at the solutions.

Tutorials won’t discuss those questions in the tutorials, but will answer questions if you have any.

There are no extra questions for this module, except for carefully reviewing the spreadsheets seen in the lecture.

Preparation for assessment

Mid-semester (15%) and final (60%) exams

  • Start your summary of Module 1 and 2.

Assignment (25%)

  • Nothing to do for now.
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References

Taylor, Greg. 2000. Loss Reserving: An Actuarial Perspective. Huebner International Series on Risk, Insurance and Economic Security. Kluwer Academic Publishers.