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The Insurance Times
The weighting of the actual and expected experience
results in the cost to the subject entity for the current
period.
(iii) Composite rating is an administrative tool to facilitate
the rating of large, complex risks upon audit. Instead
of rating different coverage using different exposure
bases, all applicable coverage are rated using one,
composite, exposure bases.
The references to insurance company's loss and
A:Ae development factors, factors from claims-
made to occurrence and vice vers, loss and ALAE
trend factors to current year, exposure trend factors,
and expected loss and ALAE ratios reflect that
different insurance companies may use different
factors and ratios.
ISO supplies advisory loss and ALAE development
factors, factors from claims-made to occurrence and
vice versa, loss and ALAE trend factors to current
year, and exposure trend factors but does not supply
advisory expected loss and ALAE ratios.
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