Pricing in General Insurance

128 Pricing in General Insurance

For other types of exercises (such as performance analysis), it may make sense to use the

exchange rate at the date when the loss was paid.

10.2.3 Policy Year Allocation

All claims are allocated to the appropriate policy year. For pricing, this is not necessarily

the original policy year, but the policy year according to the renewal policy period (nor-

mally these are the same): if, for instance, the policy runs from 1 April 2015 to 31 March

2016, we assign a claim occurred on 16 May 2008 to 2008, even if the original policy started

from 1 July 2008 and the policy year of that claim would then have been 2007.