PCnewbie17
New Member
- 1
Hi, I'm a student and am looking for insurance expertise in order to complete a business case.
I'm provided with the Direct Written Premium, Loss Ratio (indemnity only), Loss Adjustment Expense Ratio, and Combined Ratio for 2014-2017. However I only have the # of Claims, Average Indemnity Paid per Claim, Litigation Rate (% of claim), Fraud Investigation Rate (% of claim), and Subrogation referral rate (% of Claim) for only 2017. Goal is to forecast for the next 5 years to provide quantitative info/ROI to a hypothetical CFO on why they should adopt a new IT system.
Couple questions:
1. For calculating "total loss" is it calculated via A) # of claims X average indemnity paid per claims or B) Direct Written Premium X Loss Ratio (indemnity only)?
2. Do I need to subtract from the total claims the sum of Litigation Rate, Fraud Investigation Rate, and Subrogation referral rate claims? These numbers are provided for a reason and thats the only reason why I think they would be provided.
Thanks in advance for your help!
I'm provided with the Direct Written Premium, Loss Ratio (indemnity only), Loss Adjustment Expense Ratio, and Combined Ratio for 2014-2017. However I only have the # of Claims, Average Indemnity Paid per Claim, Litigation Rate (% of claim), Fraud Investigation Rate (% of claim), and Subrogation referral rate (% of Claim) for only 2017. Goal is to forecast for the next 5 years to provide quantitative info/ROI to a hypothetical CFO on why they should adopt a new IT system.
Couple questions:
1. For calculating "total loss" is it calculated via A) # of claims X average indemnity paid per claims or B) Direct Written Premium X Loss Ratio (indemnity only)?
2. Do I need to subtract from the total claims the sum of Litigation Rate, Fraud Investigation Rate, and Subrogation referral rate claims? These numbers are provided for a reason and thats the only reason why I think they would be provided.
Thanks in advance for your help!