Page 148 - ic92 actuarial
P. 148
The Insurance Times
Ap = Actual Primary Loss
Ep = Expected Primary Loss
Ae = Actual Excess Loss
Ee = Expected Excess Loss
B = Ballast Value
w = Excess Losses Weighting Factor
Note , the denominator of this formula equals E + B
Where
E = Excess Losses
This formula is also written as
M = Ap +C + (Ae X w )
E +C + (E X w)
pe
Where C is a different stabilizing value than B. C is a
function of w, B and Ee.
M =1 + CD
Where CD is the experience rating (credit/debit)
Website: www.bimabazaar.com Call: 033-22184184 /40078428 148
Copyright@ The Insurance Times. 09883398055 / 09883380339
