sample-25
for the earned premium, we divide by 2, it isn't because policies are written uniformly throughout the year?
for expected LR, why expected LC per policy / premium per policy? LC is losses/exposure, expected LC per policy / premium becomes losses/(exposure*premium)?
Comments
Yes to your first question
For your second question, exposure is assumed to be 1 here so it drops out since you are looking prospectively whether the group of contract will be onerous over the next year