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12 Cards in this Set

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  • Back
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Bonus hunger
reluctance of policyholder to notify claims or clm amts when faced with potential increase in premiums. hunger for bonus
dont want premiums to increase. dont notify claims or amts.
bonus malus
it is a ncd system where the premium level readhed after the polyholder has made claims can be higher than that at entry pt. continental europe and elsewhere.
NCD - positive and negative discounts
deposit premiums
premium at the start of the period of cover which may be followed by an adjustment premium when all relevant rating information is known. sometimes adjustments may relate to the claims experience emerging
experience rating, fleet rating
experience rating
is a system under which the premium for an individual risk depends at least in part on the claims experience of that risk, usualy in an earlier period or the may be sometimes in the period of cover.
prospective or retro. high risk tend to remain HR and LR tend to remain LR. so makes sense to charge higher premium relatively in future to those who have made more claims than those who have made less claims.
fleet rating
process of assesing prem rates for fleets.

different techniques from those that would be used for the individual risks in the fleet , will be used.

these techniques mainly based on the size and the amount of claims history available.

small fleets - more weight to book rates per vehicle( std rates), with allowance for expense savings

large fleets - some XP rating. so that credibility of past fleet experience increases with fleet size.

marine hull fleet rating - incorporate chars of the fleet in rating proc, plus risk chars of indvl ships.

can apply adv stat techs, but simpler rating techs could be used.
motor fleet - wtd avg of global expe and individual fleet expe

marine hull - combination of individual fleet expe, individual ship chars.
Clash cover
XL cover obtnd by insurers to limit exposure to risk that an event leads to claims on one or more policies, where OW the insurer might be liable for claims upto any retention limit for each individual policy.
1 event - clms on several policies
An arrgt whre several insurers enter into a single contract with the insured to cover a risk in agreed proportions at a specified premium.

each insurer liable for its proportion of total risk

if used in XL contracts - refers to proportion of clms retained by the cedant.
several insurers share risk in agreed %ages.
Hours clause
A clause within catastrophe reinsurance treaty that specifies the limited period of time during which claims can be aggregated for 1 claim under the RI contract. commom 24 or 72.
cat cover - ltd period of time - for agg clms - for one clm under contract
ceding office's retention under a surplus RI treaty.

in coinsurance arrgts - as % age allocated to an insurer.

or to refer to a class of business
3 meanings - reinsurance. coinsurance, and general insurance businesses
from ground up
Ground up statement of the original insurer's experience for a cob offered for RI, shows number and distribution by amount of all clms however small, even if RI only applies to large clms.

grd up loss distributions are used to evaluate effect of different levels of deductible on other insurances such as motor.

analyses often entail simulation techniques to evaluate RI'd loss distributions.
number and clm amt distributions, no matter how small

effect of level of deductible on other insurances such as motor

simulate RI loss dists
Original gross premium income, OGPI ( OGWP or OGEP)
the gross premium income received by an insurer for a class of business covered by non proportional RI trty.

RI premium is calculated as % age of OGPI
gross premium, RI premium ( % OGPI)
Net Premium
premium net of RI cost, usually.

may also mean net of taxes or acq expenses &/or commision
net of RI, taxes, acq expenses or commission