Search Results

5 results for “premium”

Formulae (5)

PP = f \times S

Expected claim cost per policy: frequency times severity.

GP = \frac{PP}{1 - e}

Premium that covers claims plus an expense/profit load.

LR = \frac{C}{P}

Claims paid divided by premiums earned.

CR = LR + ER

Total cost ratio: losses plus expenses vs premium.

P = E[X] + \theta\,\text{Var}(X)

Premium that adds a load proportional to risk variance.