L
lwang
Member
This is the gap insurance question. I don't understand examiner's report "Economic conditions impacting on market values of vehicles and therefore severity of claims for gap insurance are leveraged. For example, a 5% increase in depreciation value has a greater than 5% increase in claim severity. "
I thought the depreciation value is the claim severity/costs. Where does the gearing effect come from?
Thanks in advance!
I thought the depreciation value is the claim severity/costs. Where does the gearing effect come from?
Thanks in advance!