6.8 Average Age of Claims

From paper appendix, to be included later…(Not crucial) Not complete

\(t\) is the number of months since inception

Accident year

\[x = \begin{cases} \dfrac{t}{2} &: \: t < 12 \\ t - 6 &: \: t \geq 12 \\ \end{cases}\]

Accident Quarter

\[x = \begin{cases} \dfrac{t}{2} &: \: t < 3 \\ t - 1.5 &: \: t \geq 3 \\ \end{cases}\]

Policy year

\[x = \begin{cases} \dfrac{t}{3} &: \: t \leq 12 \\ t - 12 &: \: t \geq 24 \\ \end{cases}\]

• The in between 12 and 24 is some complicated formula…