The following is the experience of Insurer A for the last three years: Year Number of...

 

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The following is the experience of Insurer A for the last three years: Year Number of Exposures Number of Collision Claims Collision Losses ($) 1 2 3 10,000 10,000 10,000 375 330 420 350,000 e. Calculate the mean losses per claim. f. What is the frequency of the losses? g. What is the severity of the losses? 250,000 400,000 a. What is the frequency of losses in year 1? b. Calculate the probability of a loss in year 1. c. Calculate the mean losses per year for the collision claims and losses. d. Calculate the mean losses per exposure. The following is the experience of Insurer A for the last three years: Year Number of Exposures Number of Collision Claims Collision Losses ($) 1 2 3 10,000 10,000 10,000 375 330 420 350,000 e. Calculate the mean losses per claim. f. What is the frequency of the losses? g. What is the severity of the losses? 250,000 400,000 a. What is the frequency of losses in year 1? b. Calculate the probability of a loss in year 1. c. Calculate the mean losses per year for the collision claims and losses. d. Calculate the mean losses per exposure.

Answer rating: 100% (QA)

SOLUTION a The frequency of losses in year 1 is calculated by dividing the number of collision claim... View the full answer