I was wondering whether there's a failsafe way to know whether to discuss factors taking the theoretical risk premium to office/actual premium.
e.g. April 2005 Q1 ... List the data you require to carry out an assessment of the appriateness of the risk premiums.
The answer - usual policy/claims data, no marks for any loading/market condition type points.
So is 'risk premium' always talking about the theoretical price, no loadings, no further considerations etc?
Thank you!