Frequency × Severity = Pure Premium
This lesson is part of the course
In this lesson
You split Brackwater Auto Insurance's five accident years of auto losses into claim frequency and severity, multiply them back into the pure premium and get the all-years figure right.
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Lessons in this course
- Exposures & Earned Premium: the Mid-Month Rule Locked
- Frequency × Severity = Pure Premium Locked
- Loss Trend: Annual Trend Rate, Trend Period & Trend Factor Locked
- Developing Losses to Ultimate and Trending Them Locked
- On-Level Premium: Bringing Past Premium to Today's Rates Locked
- The Loss Ratio Method: the Indicated Rate Change Locked
- Expense & Profit Loads: from Pure Premium to Gross Rate Locked
- Rating Factors & Relativities: Base Rate × Factors Locked