Describe How the Combined Ratio on a P&C Insurance Line

question 42

Essay

Describe how the combined ratio on a P&C insurance line is calculated. At what point does the combined ratio indicate that underwriting was profitable? If the line was profitable, how can the insurance firm still make money on the line now and in the future?

---

Definitions:

Second Birthday

The celebration of the second anniversary of a person's birth.

Malnutrition

A condition resulting from an inadequate or unbalanced intake of nutrients, leading to various health issues.

Percentile

A statistical measure indicating the value below which a given percentage of observations in a group of observations fall.

Syntax

The set of rules, principles, and processes that govern the structure of sentences in any given language, including word order.