Difference between revisions of "Notation - Pricing"
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|| ''Q<sub>c</sub>'' || Profit percentage at current rates | || ''Q<sub>c</sub>'' || Profit percentage at current rates | ||
| − | |- | + | |- style="border-bottom: 2px solid;" |
|| ''Q<sub>T</sub>'' || Target profit percentage | || ''Q<sub>T</sub>'' || Target profit percentage | ||
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|| ''R1<sub>P,i</sub>'' || Proposed relativity for the ith level of rating variable R1 | || ''R1<sub>P,i</sub>'' || Proposed relativity for the ith level of rating variable R1 | ||
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| − | || '' | + | || ''A<sub>c</sub>'' || Current fixed additive fee |
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| − | || '' | + | || ''A<sub>p</sub>'' || Proposed fixed additive fee |
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Latest revision as of 14:47, 30 November 2020
TEXT NOTATION
The text contains a significant number of formulae. The following is a summary of the key notation that appears throughout the text. Actual references in the text may specify more precise definitions (e.g., L could be used to describe accident year reported losses, policy year ultimate losses, etc.).
X Exposures P, P Premium, Average premium (P divided by X) Pc, Pc Premium at current rates, Average premium at current rates (Pc divided by X) PI, PI Indicated premium, Average indicated premium (PI divided by X) Pp, Pp Premium at proposed rates, Average premium at proposed rates (Pp divided by X) L, L Losses, Pure Premium (L divided by X) EL, EL Loss Adjustment Expense (LAE), Average LAE per exposure (EL divided by X) EF, EF Fixed underwriting expenses, Average underwriting expense per exposure (EF divided by X) EV Variable underwriting expenses F Fixed expense ratio (EF divided by P) V Variable expense provision (EV divided by P) Qc Profit percentage at current rates QT Target profit percentage Bc Current base rate Bp Proposed base rate R1C,i Current relativity for the ith level of rating variable R1 R1P,i Proposed relativity for the ith level of rating variable R1 Ac Current fixed additive fee Ap Proposed fixed additive fee
