Page 283 - ic92 actuarial
P. 283
Foundations of Casualty Actuarial Science
C = claim count
E = exposure units
4. Severity
S= L
C
Where
S = severity
L = losses
C = claim account.
5. Pure Premium
P= L
E
Where
P = pure premium
L = losses
E = exposure units
or, pure premium can also be expressed as :
P= C X L
EC
Sashi Publications - www.sashipublications.com 283
Copyright@ The Insurance Times. 09883398055 / 09883380339