Actuarial Science An insurer is reviewing claims for a certain line of insurance from Accident year $2023.$ The earned premiums in $2023$ were $$7\mathrm{.}7$ million. The base premium in $2023$ was $$1,120.$ However there was a rate change from the old premium of $$1,070$ on $1$st May $2023.$ The total losses in Accident Year $2023$ were $$6\mathrm{.}43$ million. What should the new premium for Policy Year $2025$ be if the permissible loss ratio is $0\mathrm{.}75$ and annual inflation is $7\%?$

  

Answer rating: 100% (QA)

To calculate the new premium for Policy Year 2025 we need to follow these steps 1 Calculate ... View the full answer