Question
Fill in the highlighted Blank rows in the table below: Assume: Earned Premium includes a fixed cost of 20 dollars per vehicle Variable Premium =
Fill in the highlighted Blank rows in the table below:
Assume:
Earned Premium includes a fixed cost of 20 dollars per vehicle
Variable Premium = Total Earned Premium - Expense Cost
Variable Loss Ratio = Losses / Variable Premium
Age
Drivers
Vehicles
Inquiry Count
Sold Count
Average Earned Premium
Average Losses
Total Variable Premium
Variable Loss Ratio
Closure Ratio
20-29
1
1
1,616
510
$ 520.60
$ 392.45
30-59
1
1
754
312
$ 463.33
$ 402.45
60+
1
1
1,138
410
$ 449.43
$ 301.45
20-29
2
2
1,114
210
$ 623.69
$ 354.34
30-59
2
2
1,322
510
$ 543.93
$ 457.34
60+
2
2
518
178
$ 528.37
$ 414.02
20-29
1
2
880
192
$ 566.63
$ 356.76
30-59
1
2
1,496
489
$ 506.50
$ 400.00
60+
1
2
1,456
420
$ 491.91
$ 367.87
20-29
2
1
1,302
386
$ 530.24
$ 357.21
30-59
2
1
1,210
400
$ 483.40
$ 418.48
60+
2
1
1,426
435
$ 467.76
$ 361.23
Total
Total
Total
Questions:
What is the overall Variable Loss Ratio?
___%
What is the overall Average Earned Premium?
$___
What is the overall Closure Ratio?
___%
What are your initial observations on the profiles? Please explain in full detail
If the target variable loss ratio is 77%, what steps would you take to reach that target? Please explain in full detail
Fill in the highlighted Blank rows in the table below: | ||||||||||||
Assume: | ||||||||||||
Earned Premium includes a fixed cost of 20 dollars per vehicle | ||||||||||||
Variable Premium = Total Earned Premium - Expense Cost | ||||||||||||
Variable Loss Ratio = Losses / Variable Premium | ||||||||||||
Age | Drivers | Vehicles | Inquiry Count | Sold Count | Average Earned Premium | Average Losses | Total Variable Premium | Variable Loss Ratio | Closure Ratio | |||
20-29 | 1 | 1 | 1,616 | 510 | $ 520.60 | $ 392.45 | ||||||
30-59 | 1 | 1 | 754 | 312 | $ 463.33 | $ 402.45 | ||||||
60+ | 1 | 1 | 1,138 | 410 | $ 449.43 | $ 301.45 | ||||||
20-29 | 2 | 2 | 1,114 | 210 | $ 623.69 | $ 354.34 | ||||||
30-59 | 2 | 2 | 1,322 | 510 | $ 543.93 | $ 457.34 | ||||||
60+ | 2 | 2 | 518 | 178 | $ 528.37 | $ 414.02 | ||||||
20-29 | 1 | 2 | 880 | 192 | $ 566.63 | $ 356.76 | ||||||
30-59 | 1 | 2 | 1,496 | 489 | $ 506.50 | $ 400.00 | ||||||
60+ | 1 | 2 | 1,456 | 420 | $ 491.91 | $ 367.87 | ||||||
20-29 | 2 | 1 | 1,302 | 386 | $ 530.24 | $ 357.21 | ||||||
30-59 | 2 | 1 | 1,210 | 400 | $ 483.40 | $ 418.48 | ||||||
60+ | 2 | 1 | 1,426 | 435 | $ 467.76 | $ 361.23 | ||||||
Total | Total | Total | ||||||||||
Questions: | ||||||||||||
What is the overall Variable Loss Ratio? | ||||||||||||
___% | ||||||||||||
What is the overall Average Earned Premium? | ||||||||||||
$___ | ||||||||||||
What is the overall Closure Ratio? | ||||||||||||
___% | ||||||||||||
What are your initial observations on the profiles? Please explain in full detail | ||||||||||||
If the target variable loss ratio is 77%, what steps would you take to reach that target? Please explain in full detail | ||||||||||||
The company has identified four profiles based on their growth and profit performance. | ||||||
Profile A: Low Policy Growth, Profitable | Profile C: Low Policy Growth, Unprofitable | |||||
Profile B: High Policy Growth, Profitable | Profile D: High Policy Growth, Unprofitable | |||||
What action(s) do you think the company will take on each profile (if any)? Explain your reasoning. | ||||||
Fill in the highlighted cells in the source of business tables using the data given below. | ||||||||||
2021 | 2022 | Internet | Phone | |||||||
Phone Sales | 4,000 | 2,675 | 2021 | 2022 | 2021 | 2022 | ||||
Agent Sales | 700 | 665 | Inquiries | Inquiries | ||||||
Internet Sales | 3,000 | 5,800 | Group Rejects | Group Rejects | ||||||
Phone Quotes | 10,500 | 7,000 | Sales | Sales | ||||||
GFR Quotes | 1,000 | 950 | Productivity Ratio | Productivity Ratio | ||||||
Internet Quotes | 10,000 | 18,000 | Closure Ratio | Closure Ratio | ||||||
Phone Group Rejects | 263 | 175 | ||||||||
GFR Group Rejects | 25 | 24 | ||||||||
Internet Group Rejects | 250 | 450 | GFR | All Sources | ||||||
2021 | 2022 | 2021 | 2022 | |||||||
Inquiries | Inquiries | |||||||||
Group Rejects | Group Rejects | |||||||||
Sales | Sales | |||||||||
Productivity Ratio | Productivity Ratio | |||||||||
Closure Ratio | Closure Ratio | |||||||||
Questions: | ||||||||||
What is the growth rate of total sales from 2021 to 2022? | ||||||||||
___% | ||||||||||
Fully explain what accounts for the changes that are seen from sales between 2021 and 2022. | ||||||||||
What is the Closure Ratio for Internet Source for 2022? | ||||||||||
___% | ||||||||||
What is the Productivity Ratio for All Sources for 2021? | ||||||||||
___% | ||||||||||
What is the change in Internet Distribution from 2021 to 2022? | ||||||||||
___% | ||||||||||
Below it the printing information for two locations. | |||||||||||||||||||||||||
Location | A | B | |||||||||||||||||||||||
Print Operator cost per unit | $ 0.01 | $ 1.18 | |||||||||||||||||||||||
Postage per unit | $ 0.43 | $ 0.51 | |||||||||||||||||||||||
Paper Cost per unit | $ 0.01 | $ 0.01 | |||||||||||||||||||||||
Envelope Cost per unit | $ 0.01 | $ 0.01 | |||||||||||||||||||||||
Total Estimated yearly cost | |||||||||||||||||||||||||
Using the information above, calculate the estimated yearly printing costs between these two locations using an estimated yearly volume is 84,000 units. Provide a reccomendation on which location should be used for printing and why. | |||||||||||||||||||||||||
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Precalculus
Authors: Michael Sullivan
8th Edition
0321830814, 9780321830814
