Re: Premium trend period
GAMBARDJI ( GAMBARDJI@aol.com )
Sat, 28 Feb 1998 21:33:46 EST
I believe that the average earned date and the average accident date are one
in the same. If the rates were to be in effect for one year, then the average
"written" date would be at half way--six months. Given that policy (and annual
rates) , the average day of earning AND the average accident date would be six
months from that date, i.e. one full year from the effective date. Of course,
if they were six month policies the average accident date would be three
months beyond the average written date--nine months from the effective date. I
don't see how premiums and losses could be trended to different dates when
using a loss ratio approach. Can anyone else confirm this?