M
mossie
Member
Hi,
Are insurers allowed to increase its premiums in order to recoup past losses?
I always thought they are not allowed, and could only increase its premiums in anticipation of changes of future experience (e.g. increase expected future claims), so Ch18 (analysis of experience) p21 - Phase 4, 2nd paragraph, “Eventually premium rates will increase to cover the losses being incurred”, is puzzling me.
Many thanks!
M.
Are insurers allowed to increase its premiums in order to recoup past losses?
I always thought they are not allowed, and could only increase its premiums in anticipation of changes of future experience (e.g. increase expected future claims), so Ch18 (analysis of experience) p21 - Phase 4, 2nd paragraph, “Eventually premium rates will increase to cover the losses being incurred”, is puzzling me.
Many thanks!
M.