C
ciza5
Member
When using the burning cost (or frequency severity approach) the notes outline a two step approach to trending claims,
1.inflate to current values
2. Inflate to midpoint of exposure period which rates apply
Does this exposure period in part two refer to average claim date rather than average policy inception date? If so is it always avegrage claim date we inflate to?
Thanks,
1.inflate to current values
2. Inflate to midpoint of exposure period which rates apply
Does this exposure period in part two refer to average claim date rather than average policy inception date? If so is it always avegrage claim date we inflate to?
Thanks,