Académique Documents
Professionnel Documents
Culture Documents
Classification
Masonary
Carpentry
The Expected Loss Ratio and D.Ratio and Payroll for each item
Item
1990
1991
1992
Carpentry
Carpentry
Concrete
Misc
Misc
Masonary
Masonary
Carpentry
Electrical
Electrical
Electrical
Misc
Carpentry
Carpentry
Carpentry
Electrical
Electrical
Electrical
3700
41200
3600
11500
12100
19000
5900
3300
8400
31000
4500
2300
5900
15010
3700
41200
3600
11500
Masonry 5022
Electrical 5190
Concrete 5215
Carpentry 5645
ELR
D Ratio
6.43
1.84
6.25
4.37
0.25
0.27
0.25
0.31
If the max primary loss value is 5000$, the weighing value is 0.2
used in accessing standard premium
o and Payroll for each item for three years is summarized below
Payroll
1990
410000
190000
352000
725000
Payroll
1991
435000
195000
359000
710000
Payroll
1992
429000
199000
321000
775000
0$, the weighing value is 0.27 and the ballast value is 33000$. Obtain the EMR
m
0
S.No
1
Classification
Code
Expected Loss
Ratio (ELR)
D.Ratio
Pay Roll
1990
Expected
Losses
(2*4)/100
Expected
Actual Incurred
Primary
Losses
Losses (3*5) i,e Claim Amount
Actual
Primary
Losses
5022
6.43
0.25
410000
26363
6591
5190
1.84
0.27
190000
3496
944
5215
6.25
0.25
352000
22000
5500
5645
4.37
0.31
725000
1677000
31683
83542
9822
22857
5700
15010
3700
41200
3600
11500
12100
5000
5000
3700
5000
3600
5000
5000
92810
32300
19000
5900
3300
8400
31000
4500
2300
5000
5000
3300
5000
5000
4500
2300
5022
6.43
0.25
435000
27971
6993
5190
1.84
0.27
195000
3588
969
5215
6.25
0.25
359000
22438
5610
5645
4.37
0.31
710000
31027
9618
1699000
85024
23190
74400
30100
11500
6700
17000
3100
6100
30000
5000
5000
5000
3100
5000
5000
28100
5022
6.43
0.25
429000
27585
6896
5190
1.84
0.27
199000
3662
989
5215
6.25
0.25
321000
20063
5016
5645
4.37
0.31
775000
33868
10499
1724000
85178
23400
74400
(Total
Actual
Excess)
= (g-h)
e
(Total
Expected
Losses)
f (Total
Expected
Primary)
g
(Total
Actual Incurred)
253744
69447
241610
a (Weighing
Value)
b (Ballast)
c (Expected
Total Excess)
=(e-f)
0.27
33000
184297
151110
Primary Losses
(1)
Stabilizing
Value (2)
Ratable Excess
(3)
Total
(1+2+3)
Actual
90500
167537
40800
298837
Expected
69447
167537
49760
286744
Total A
Total B
253744
241610
90500
(Total
Actual
Primary)
90500
167537
49760
40800
Actual Primary Losses + Ballast Value + Weighing Value x Actual Excess Losses + 1 - (weighing value x expected excess loss)
Expected Primary Losses + Ballast Value + Weighing Value x Expected Excess Losses + 1 - (weighing value x expected excess loss)
Hence EMR =
298837
286744
1.04
0
S.No
1
Classification
Code
Expected Loss
Ratio (ELR)
D.Ratio
Pay Roll
1990
Expected
Losses
(2*4)/100
Expected
Actual Incurred
Primary
Losses
Losses (3*5) i,e Claim Amount
Actual
Primary
Losses
5022
6.43
0.25
410000
26363
6591
5190
1.84
0.27
190000
3496
944
5215
6.25
0.25
352000
22000
5500
5645
4.37
0.31
725000
1677000
31683
83542
9822
22857
5700
15010
3700
41200
3600
11500
12100
5000
5000
3700
5000
3600
5000
5000
92810
32300
19000
5900
3300
8400
31000
4500
2300
5000
5000
3300
5000
5000
4500
2300
5022
6.43
0.25
435000
27971
6993
5190
1.84
0.27
195000
3588
969
5215
6.25
0.25
359000
22438
5610
5645
4.37
0.31
710000
31027
9618
1699000
85024
23190
74400
30100
11500
6700
17000
3100
6100
30000
5000
5000
5000
3100
5000
5000
28100
5022
6.43
0.25
429000
27585
6896
5190
1.84
0.27
199000
3662
989
5215
6.25
0.25
321000
20063
5016
5645
4.37
0.31
775000
33868
10499
1724000
85178
23400
74400
(Total
Actual
Excess)
= (g-h)
e
(Total
Expected
Losses)
f (Total
Expected
Primary)
g
(Total
Actual Incurred)
253744
69447
241610
a (Weighing
Value)
b (Ballast)
c (Expected
Total Excess)
=(e-f)
0.27
33000
184297
151110
Primary Losses
(1)
Stabilizing
Value (2)
Ratable Excess
(3)
Total
(1+2+3)
Actual
90500
167537
40800
298837
Expected
69447
167537
49760
286744
Total A
Total B
253744
241610
90500
(Total
Actual
Primary)
90500
167537
49760
40800
Actual Primary Losses + Ballast Value + Weighing Value x Actual Excess Losses + 1 - (weighing value x expected excess loss)
Expected Primary Losses + Ballast Value + Weighing Value x Expected Excess Losses + 1 - (weighing value x expected excess loss)
Hence EMR =
298837
286744
1.04