Q25
For part b) if the observed LR is still <1 does this not indicate that the policies are non-onerous?
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For part b) if the observed LR is still <1 does this not indicate that the policies are non-onerous?
Comments
Just looking at the loss ratio means you are assuming that a company has no expenses. A loss ratio of 50% could be onerous if your expense ratio is 55%. If you said combined ratio then yes