Burning cost Ratio
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japjotsingh99
Burning-cost ratio is an insurance industry calculation of excess losses divided by the total subject premium. Calculation of the burning-cost ratio is one of several rating methods and is simple and widely used, but requires a large amount of claims data to be accurate. This calculation is strongly related to a type of statistics called ratio estimation.
It works by estimating the expected losses to a policy based on average losses in past years, after allowing for claims inflation.
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japjotsingh99 wrote:
Burning-cost ratio is an insurance industry calculation of excess losses divided by the total subject premium.Calculation of the burning-cost ratio is one of several rating methods and is simple and widely used, but requires a large amount of claims data to be accurate. This calculation is strongly related to a type of statistics called ratio estimation.
It works by estimating the expected losses to a policy based on average losses in past years, after allowing for claims inflation.
Sent from my SM-J700F using
Actuarial Info mobile app
I’m not sure what we are saying here. Can I have some kind of excel of just an example to see what this is all about?
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