Hello Right before question 10.1, the notes stated that an insurer can partner and make use of another insurer's data if they have no historic experience in a particular line of business. What's in it for the other insurer to agree to share their data (apart from commissions) since this can be viewed as competition? Thanks.
Section 1 Also, on the final part of the fifth bullet point on Rating Analyses (page 5, pure risk cost ...) on allowing for reinsurance cost in the final premium, may I know how is this done is practice, if we do not know how many policies we will write at the beginning of the year? Thanks again. Hope these are not too much
This could be done through a reciprocal arrangement: each insurer reinsures a block of business with the other. Both insurers benefit from diversification and data sharing. For the benefit of other students reading this, you are referring to Chapter 19, Section 1. I hope this helps Duncan
See section 6.2 of Chapter 12. We load the price per policy for the cost of reinsurance. To avoid confusion for other students reading this, you are referring to Chapter 19, Section 1.
