The question asks for Gross Premium PER mille sum insured Why does the premium rating formula therefore start out with: GP x SI ? ie when I tried the question, I had on the LHS, GP / SI = .... I see by the end of the formula it's dividing by the SI, but how I'm getting confused between how to come up with this formula and the equivalent in Q12.16. Thanks! thistle
I think GP is expressed as prem per unit SI, and the workings are in terms of absolute amounts. That's why GP x SI = premium amt.
