The average damage per accident in 2018 was R100 000 and the administration cost R10 000 per claim, which gives an average of R110 000 for 2018, and total claims cost of R5 500 000 for the year. Claims inflation forms a significant component of the total claims cost per accident and for that reason it is important to include claims inflation in the projections. For the purpose of this exercise, the CRO defined claims inflation as the administration cost and effect of exchange rate fluctuation. Calculate the expected aggregate total claims cost per annum for the projected period by incorporating the information provided by Two Hands Econometrics Consultancy Services. (Show all calculations).