Schedule P 'Parts' and 'Uses'
I'm having a hard time interpreting why certain parts are, or are not, included in the DT-RAPID table for the "uses" and "parts".
For example, "trends" is noted as needing parts {1,2,5}. Logically I feel like we need parts 3 and 4 to be able to derive trends in paid, case adequacy, reserve provisions, etc. And Odom (page 175) states "Analytics of the data, including a review of loss ratios, claim closure rates from Part 5 data, and average severities from data contained in Parts 2 through 5 can provide
observations regarding trends".
I'm just a bit confused on how much of the "parts" column in the BA table is something I need to memorize, versus something I could intuitively answer on the exam by knowing the parts and being able to state some general information about it.
Comments
I find that the parts column is a fair assessment of the parts necessary for the matching uses. It offers good guidance for questions where you are asked to elaborate on phenomena like trends using Schedule P data.
In the function table, View IBNR/Case split uses part 4,5. I wonder why part 5 (claim count) is relevant to this. I would expect i need part 2,3,4 to calculate case outstanding reserve.
Sorry, my mistake. It's corrected. Thx!