Re: ISO Exper Rating
john.pedrick@ins.state.oh.us
Thu, 1 Oct 1998 07:41:00 -0400
That's not all that bothers me in 1979 question #4. The second statement
that the AER reflects losses capped by the MSL is not necessarily false, it
just doesn't tell the whole story about ALAE being included. Since the AER
includes IBNR resulting from detrended expected loss, it would seem that
the AER does include trend.
I guess it's like baseball, or any sport with umpires or referees. We've
got to get beyond the winning mark with sufficient margin that a bad call
won't put us below the pass mark. Non illegitimi carborundum.