"Brockmeier states that when using the Dynamic Method for premium trend,
loss trend should be based on internal losses excluding wind. Does anyone
have any ideas why it is necessary to exclude wind?"
Since Brockmeier doesn't explain this, I assume it's simply because wind
losses are the most erratic part of the loss experience. If you include
wind losses, your calculated trend will be highly sensitive to random
events, like whether a hurricane happened to hit in the first year in your
experience period or in the last year.
Brockmeier notes (and you can see in exhibit 6) that the trends in his data
are quite unstable in spite of the removal of wind losses.
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