Rating Composition

A rate for a risk ideally should reflect the hazards and exposures that the risk presents. Similarly the broader the coverage the higher the rate should be.

 

A rate is made up of:

 

Ø       Pure Risk element (ie expected ‘working loss’ claims)

 

Ø       Treaty reinsurance cost for Per Risk exposure (needed for the occasional high severity loss)

 

Ø       Catastrophe reinsurance cost.

 

Ø       Overheads (ie administration and charges).

 

Ø       Intermediaries’ commission.

 

Ø       Expected Profit.

 

 

Summarized from many sources

 

Any questions or comments please feel free to give me a call

 

IMAM MUSJAB – 08128079130

imusjab@qbe.co.id

 

 

Tags:

About the Author

has written 1650 stories on this site.

Copyright © 2017 AHLIASURANSI.com. All rights reserved. Managed by Imam MUSJAB
Powered by WordPress.org, Custom Theme and ComFi.com Calling Card Company.