Casualty Actuarial Society

Research

1998 Massachusetts Private Passenger Automobile Cash Flows-Property Damage Liability Coverages Premiums, Expenses and Losses

Initial Relative Loss and Expense Weights

Quarter (1)




Premium
(2)



Premium
Taxes
(3)




Commissions
(4)



Other
Expenses
(5)
=(2)+(3)=(4)


Total
Expenses
(6)




Losses
(7)
=(5)+(6)
Total Losses
and Expenses
0 192.000 0.000 0.000 21.920 21.920 0.000 21.920
1 391.000 23.000 134.100 32.880 189.980 69.185 259.165
2 215.000 0.000 0.000 21.920 21.920 129.235 151.155
3 159.000 0.000 0.000 16.440 16.440 143.437 159.877
4 42.000 0.000 0.000 16.440 16.440 162.243 178.683
5 1.000 0.000 0.000 0.000 0.000 120.651 120.651
6 0.000 0.000 0.000 0.000 0.000 46.411 46.411
7 0.000 0.000 0.000 0.000 0.000 20.901 20.901
8 0.000 0.000 0.000 0.000 0.000 11.755 11.755
9 0.000 0.000 0.000 0.000 0.000 9.431 9.431
10 0.000 0.000 0.000 0.000 0.000 6.633 6.633
11 0.000 0.000 0.000 0.000 0.000 4.032 4.032
12 0.000 0.000 0.000 0.000 0.000 2.606 2.606
13 0.000 0.000 0.000 0.000 0.000 2.034 2.034
14 0.000 0.000 0.000 0.000 0.000 1.676 1.676
15 0.000 0.000 0.000 0.000 0.000 1.022 1.022
16 0.000 0.000 0.000 0.000 0.000 0.804 0.804
17 0.000 0.000 0.000 0.000 0.000 0.513 0.513
18 0.000 0.000 0.000 0.000 0.000 0.367 0.367
19 0.000 0.000 0.000 0.000 0.000 0.073 0.073
20 0.000 0.000 0.000 0.000 0.000 0.293 0.293
               
Total 1000.000 23.000 134.100 109.600 266.700 733.301 1000.001
               
Weights for premiums, commissions, other expenses and losses are chosen to preserve loss to expense ratios in the Commissioner's Decision on 1997 rates.
Weight for premium tax is 0.0230        
Weight for commission is 0.1341        
Weight for other expense is 0.1096        
Weight for loss is 0.7333