J.T.

01-15-2003, 05:02 PM

I am going through the problems in the All 10 Manual, and came across one that is confusing me. Forgive me if my question is dumb, but I just started in the P/C side a couple of months ago.

There are 3 methods to review increasing limits (Trend Indiv. Losses, Loss Develop. by Layer, and Fitted Size-of-Loss Distribution). The final part of the question asks:

"Given that the underlying size of loss distribution can be determined, which of the methods above whould produce the highest increased limits factor and which would produce the lowest increasd limits factor? Explain your answer."

Can anyone give me any insight into this?

TIA!

There are 3 methods to review increasing limits (Trend Indiv. Losses, Loss Develop. by Layer, and Fitted Size-of-Loss Distribution). The final part of the question asks:

"Given that the underlying size of loss distribution can be determined, which of the methods above whould produce the highest increased limits factor and which would produce the lowest increasd limits factor? Explain your answer."

Can anyone give me any insight into this?

TIA!