F
freebird
Member
Hi,
I am having problems in understanding the exposure split for Product X.
I understand that the total risk units will be = 4 (3*1 + 1*2) = 20 units
After that I followed the way it has been explained for Q&A 3.16 and 6.15 and I am getting 5 units of unexpired risk which doesn't match with the 8.5 units in the solution. Could you please help.
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Also, when calculating URR why it is multiplying with 1.1?
I thought URR = Expected loss ratio * Gross Unexpired Premium ---which is 200/2 = 100 according to me. In short why are we taking the next year's premium?
Thanks in advance!
I am having problems in understanding the exposure split for Product X.
I understand that the total risk units will be = 4 (3*1 + 1*2) = 20 units
After that I followed the way it has been explained for Q&A 3.16 and 6.15 and I am getting 5 units of unexpired risk which doesn't match with the 8.5 units in the solution. Could you please help.
-----------------------------------------------------------
Also, when calculating URR why it is multiplying with 1.1?
I thought URR = Expected loss ratio * Gross Unexpired Premium ---which is 200/2 = 100 according to me. In short why are we taking the next year's premium?
Thanks in advance!