Variable Expense Trend

Doing a final pass through Mahler's guide on Ratemaking -- on page 411 he discusses the expense trend in relation to the Exposure/Policy Based Projection Method and I am just noticing that Variable Expenses are not trended to the Proposed Effective date. Can someone explain to me why this is so? Should I just take this as what should be done? My first though is that the variable exposure trend gets caught up in premium trend... but that's just a hunch.



Thanks in advance;



Kevin

Variable Expense Trend