IRIS 11

akivalevy01akivalevy01
in NAIC.IRIS

There's this difference going on, and it's bugging me.

In the Annual Statement > 5 Yr Historical Data > Line 74 = Development of INCURRED. That fits with where the numerator comes from: Sched P Part 2 Column 11. We're measuring the change in ULTIMATE.

But then IRIS calls it RESERVE development, and totally focuses on the reserves.

I think IRIS got it wrong.
Suppose over the year, I pay out all my claims and the reserves drop to 0. I would get IRIS ratio 11 = 0%. The focus is on ultimate devlopment, not reserve development.

Comments

  • Staff - ACStaff - AC

    IRIS refers to that same location in Schedule P when it says "reserve development."

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