Any thoughts?
Michael
-----Original Message-----
From: collision@email.com [SMTP:collision@email.com]
Sent: Saturday, March 27, 1999 4:42 PM
To: CAS Part 5A
Cc: Stuart Klugman
Subject: Daykin, Ch.6
In Daykin, Chapter 6, p. 199
He states that 'the better the expected profitability of a line, the
higher the suggested retention should be . . .'
To me, this makes sense, as saying, retain as much of the good/
profitable business as you can.
Then he goes on to say that the retention limits should be chosen in
proportion to the corresponding safety loadings.
This seems contrary to my prior thought, where he seems to be saying
that a high safety loading (b/c of a potentially unprofitable/ unpredictable
line) should get a higher retention???
ANY THOUGHTS/ CLARIFICATIONS?
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