----Short-term insurance ratemaking----- Given the following information: Vehicle Class 1A 2A...
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----Short-term insurance ratemaking-----
Given the following information: Vehicle Class 1A 2A Trended EPAPR 52,700 64,300 113,150 187,500 157,050 60,100 Exposures 3,000 2,500 4,250 5,000 3,500 1,250 Trended Ultimate LOSS+ALAE 45,000 50,000 89,250 150,000 122,500 50,000 Current Relativities 0.45 0.70 0.72 1.00 1.20 1.25 2B 3B 30 a. Find the indicated rate relativities (relative to the base class) using the Pure Premium Approach. b. Find the indicated rate relativities (relative to the base class) using the Loss Ratio Approach. Given the following information: Vehicle Class 1A 2A Trended EPAPR 52,700 64,300 113,150 187,500 157,050 60,100 Exposures 3,000 2,500 4,250 5,000 3,500 1,250 Trended Ultimate LOSS+ALAE 45,000 50,000 89,250 150,000 122,500 50,000 Current Relativities 0.45 0.70 0.72 1.00 1.20 1.25 2B 3B 30 a. Find the indicated rate relativities (relative to the base class) using the Pure Premium Approach. b. Find the indicated rate relativities (relative to the base class) using the Loss Ratio Approach
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