Calculate with the method of the cost of losses and with the method of the...
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Accounting
Calculate with the method of the cost of losses and with the method of the index of losses the new premium of the basic category (base risk), when the current one is 160 and the adjusted loss ratio is 69%. It is given
Category
Final losses
Risk exposure units
Valid differential
Accrued premiums
I
1.750.000
13.000
0.93
1.700.000
II
1.600.000
10.000
1.08
1.250.000
III
1.400.000
8.000
1.00
1.120.500
b) The rate adjustments that affect the historical experience period are as follows: 1) Change of total average rate on 01/07/2016 by 8%. 2) Change of total average rate on 01/07/2017 by 13%.
A legal amendment imposes increases by 3% on 01/01/2017 and by 4% on 01/01/2018 in the individual premiums of all insurance policies (including those already in force). Calculate the adjustment factor for the calendar year 2017.
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