Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

For last calendar year, a property insurer reported the following financial information for a specific line of insurance Premiums written $25,000,00 Expenses incurred $5,000.000 Incurred

For last calendar year, a property insurer reported the following financial information for a specific line of insurance

Premiums written $25,000,00

Expenses incurred $5,000.000

Incurred losses and loss adjustment expenses $14,000,000

Earned premiums $20,000,000

A. What was the insurers loss ratio for this line of coverage

B. Calculate the expense ratio for this line of coverage

C. What was the combined ratio for this line of coverage

D. A large casualty insurer writes a substantial amount of private passenger auto insurance. An actuary analysed claims data for a specific class of drivers for a recent one-year policy period. The claims data showed that the insurer paid out $30 million for incurred losses and loss-adjustment expenses for each 100.000 cars insured for one year. Based on the pure premium method, calculate the pure premium.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Money Banking And Financial Markets

Authors: Stephen Cecchetti

2nd Edition

0073523097, 9780073523095

More Books

Students also viewed these Finance questions