Ratemaking Chapter 5

[New at pd]

Hi everyone,

I have my study manual, but I don't yet have the new edition of the ratemaking book. Could somebody please post questions 5.3,5.4,and 5.5?

Thank you very much.

[Sam_Liu]

5.3
The manual premium for Big Enterprise's General Liability insurance is $500,000 in 2001. The manual premium and developed losses for the past two year are shown below:

Year 1999 2000
Manual Premium 400,000 450,000
Developed Losses 175,000 250,000

Under an experience rating plan, the latest two years' loss ratios(weighted by premium) are compared to the expected loss ratio, and is given credibility according to the following formula:

Z=(Manual Premium)/(1,000,000+Manual Premium)

If the expected loss ratio is 65%, find the experience rated premium for 2001 for Big Enterprise.

[Sam_Liu]

oh my god,
it's not easy to show tables on this forum

[Sydney Bristow]

Sam, that's why I didn't even try to reply! :roll:

[New at pd]

You could just put commas (or some other separater) between the values.
Then a user could just pop the values into Excel and print.