J
Jun Wu
Member
Dear All
I hope you are well
For this question, what does the 'return period' column tells us? or how do we use this to compare actual and modelled/expected result?
Solution compares this, eg:
Trade Credit:
The return periods are all less than ten years which is fairly near term and therefore does not seem unreasonable given the actual experience.
Kidnap and ransom:
The return periods for the loss ratios are not unreasonable given how close the actual and expected experience is.
The 1-in-30 year return period for the combined ratio may or may not be an extreme result, since it depends on what has happened as to whether this result is reasonable
I don't get what we are comparing?
Many thanks
Best regards
Jun
I hope you are well
For this question, what does the 'return period' column tells us? or how do we use this to compare actual and modelled/expected result?
Solution compares this, eg:
Trade Credit:
The return periods are all less than ten years which is fairly near term and therefore does not seem unreasonable given the actual experience.
Kidnap and ransom:
The return periods for the loss ratios are not unreasonable given how close the actual and expected experience is.
The 1-in-30 year return period for the combined ratio may or may not be an extreme result, since it depends on what has happened as to whether this result is reasonable
I don't get what we are comparing?
Many thanks
Best regards
Jun