Takaful wishes to adjust their rates for next year, they calculate that the expected loss ratio is 0.77, while the data shows that the loss adjustment expenses is 466 and the total premium earning is 1,053. The company's current rates 65. Using the experience rating method what will the new primum be if the credibility factor is 0.32
Takaful wishes to adjust their rates for next year, they calculate that the expected loss ratio is 0.77, while the data shows that the loss adjustment expenses is 466 and the total premium earning is 1,053. The company's current rates 65. Using the experience rating method what will the new primum be if the credibility factor is 0.32
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter14: Valuation: Market-based Approach
Section: Chapter Questions
Problem 1FIC
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Takaful wishes to adjust their rates for next year, they calculate that the expected loss ratio is 0.77, while the data shows that the loss adjustment
expenses is 466 and the total premium earning is 1,053. The company's current rates 65. Using the experience rating method what will the new
primum be if the credibility factor is 0.32
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