Mahler 8.65 Homeowners Indication - Non-Modeled Cat Pure Premium

samedi 24 janvier 2015

In Mahler 8.65, in determining Non-Modeled Cat L&ALAE Pure Premium,



The relevant data given is

Rate effective date 1/1/2011 (in effect for one year)

(AIY / Earned Exposure) for CY/AY's 2005 - 2012

Selected non-modeled CAT to AIY ratio

ULAE factor



Solution: (Avg 2011 & 2012 AIY/Exposure) x (sel CAT/AIY) x ULAE factor



I am confused by the logic used in selecting which years to use in calculating the projected (AIY / Exposure). Here's the solution's logic:



Since CY 2011's avg date of earning is 7/1/11, and the avg date of earning under the new rates is 1/1/12,

we should average CY11 and CY12's (AIY/Earned Exposure).





Mahler 8.65 Homeowners Indication - Non-Modeled Cat Pure Premium

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