The question is complete

what is the formula for calculating the elasticity of labor supply?

A general insurance company is considering whether to transfer the liabilities from a particular class of business using some form of run-off reinsurance. (i) Outline: (a) the aims of run-off reinsurance. (b) the circumstances in which it might be used. 12] (ii) Describe the two main types of run-off reinsurance that could be used. (6]State the factors to consider when selecting an increased limit factor (ILF) curve for a pricing exercise. A general insurance company needs to price a professional indemnity policy for an accountancy firm. It has two II F curves, appropriate for accountants. The numerical values of the curves are given in the table below. R 0.00 025 0.40 0.50 0.70 1.00 1.00 1.00 134 1.50 2.50 240 3.50 ) State how the claims distributions underlying curves A and B differ. [1] Suggest reasons why the claims distributions may vary by accountancy firm. [3] An initial claims analysis of the layer $0.5m excess of $1m gives an expected loss cost of $250.000. The company wishes to obtain the loss cost of a higher layer using the ILFs. (iv) Derive, using each curve separately, the expected loss for a $2m excess of Som layer, using linear interpolation where necessary. [3] [Total 12] 6 Describe the characteristics of Lloyd's syndicates. [4] A binding authority contract allows a third party (the coverholder) to write a number of risks on behalf of an insurer. A Lloyd's syndicate writes an annual insurance contract through a binding authority. The contract is due for renewal on I June 2012. The following data have been provided: Year of Incurred Account Commission 2007 4.230 15 3.620 2008 4.200 15% 380 2004 5.500 1,020 2010 5.430 20%% 1.600 201 4.640 1.960 Values are in $000 and are is at 31 March 2012. Premium income is received evenly throughout the year.The following assumptions have been provided Amcurved $6 Ran Year of Change Account 2007 2008 2009 2010 201 1 where rate change is the change in gross premium, ie. before the deduction of Commission . Rate change from 201 1 to 2012 is to be zero The effects of claims inflation can be ignored. The 2012 commission rate will remain at 20%%. Derive ultimate loss ratios for each year of account, net of commission and at a 2012 rating level. Use a Bombcutter Ferguson method for the 201 1 year of account with a prior loss ratio (act of commission) of $5%% [10] Estimate the underlying contract ultimate loss ratio, not of commission and at a 2012 rating level. [1]