cutenephew
03-06-2011, 09:38 PM
Given the following for a workers compensation high deductible policy:
Full Coverage Premium: $2,100,000
Full Coverage Expected Loss Ratio: 45.5%
Excess Ratio (Per-Occurrence Charge): 0.14
Aggregate Ratio (Per-Aggregate Charge): 0.02
Reported Excess Losses: $61,000
Excess Loss Development Factor: 2.410
Estimate the ultimate loss for this policy using the Loss Ratio method.
Can someone explain how this problems works together. I don't get how the high deductible is analogous to the expected claims method here. I get the part of 0.14(2.1M*0.455), but I don't get how the aggregate ratio works here.
Also, my all10 material keeps mentioning Siewert, and I don't see any reference to this author for the chapter in Fieldland, I am not sure how much I need to know about Siewert.
Thanks.
Full Coverage Premium: $2,100,000
Full Coverage Expected Loss Ratio: 45.5%
Excess Ratio (Per-Occurrence Charge): 0.14
Aggregate Ratio (Per-Aggregate Charge): 0.02
Reported Excess Losses: $61,000
Excess Loss Development Factor: 2.410
Estimate the ultimate loss for this policy using the Loss Ratio method.
Can someone explain how this problems works together. I don't get how the high deductible is analogous to the expected claims method here. I get the part of 0.14(2.1M*0.455), but I don't get how the aggregate ratio works here.
Also, my all10 material keeps mentioning Siewert, and I don't see any reference to this author for the chapter in Fieldland, I am not sure how much I need to know about Siewert.
Thanks.