T
tbs1984
Member
Hi,
I have some questions about exposures used to compute the ultimate loss ratios under accident year basis and underwriting year basis.
As far as i know, for doing the reserving of direct companies, we use accident year basis in the run-off triangle and once we have projected the ultimate losses for each accident year, we then have to divide them with earned premium of each accident year in order to get the Ultimate loss ratios.
May i know why we have to use earned premiums instead of other type of premiums (say, gross premiums, net premiums etc)?
When we are doing the reserving for reinsurance companies, we have to use the underwriting year basis. And we have to do a claim loss run-off triangle as well as a premium run off triangle.
May i know why we have to do the premium run-off triangle for underwriting year basis?
Why for underwriting year basis, we have to use the ultimate premiums as the denominators in order to get the ultimate loss ratios?
Please help and explain with details and examples. Many thanks for that.
I have some questions about exposures used to compute the ultimate loss ratios under accident year basis and underwriting year basis.
As far as i know, for doing the reserving of direct companies, we use accident year basis in the run-off triangle and once we have projected the ultimate losses for each accident year, we then have to divide them with earned premium of each accident year in order to get the Ultimate loss ratios.
May i know why we have to use earned premiums instead of other type of premiums (say, gross premiums, net premiums etc)?
When we are doing the reserving for reinsurance companies, we have to use the underwriting year basis. And we have to do a claim loss run-off triangle as well as a premium run off triangle.
May i know why we have to do the premium run-off triangle for underwriting year basis?
Why for underwriting year basis, we have to use the ultimate premiums as the denominators in order to get the ultimate loss ratios?
Please help and explain with details and examples. Many thanks for that.