Hey, I was wondering can someone help explain how we convert premium rate change from an underwriting basis to an Accident year basis?
Example: let say I have a Loss ratio (Accident year basis) and rate change (Underwriting year basis) for the following periods, to be used to project the 2004 loss ratios
Jan 2003 =5%
July 2003 =6%
Jan 2004 =-8%
Loss Ratio for 2003 =73%
How do I estimate my cumulative rate change factor on an accident year basis that will be used to adjust the 2003 loss ratios??
Last edited by a moderator: Sep 5, 2016