October 2014
Intermediate to advanced
584 pages
22h 2m
English
Content preview from Pricing in General Insurance
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Exposure Rating for Property
Exposure method is a method to price an insurance policy when the data for a specic cli-
ent is not sufcient to produce a reliable severity model. It is based on the use of so-called
‘exposure curves’, which are reengineered severity curves and are usually based on losses
from a large number of clients, as collected by large institutions such as Lloyd’s of London
or Swiss Re. Ultimately, however, the origins of many of the exposure curves used by
underwriters and actuaries in the London market remain mysterious. Actuaries would do
well not to consider these curves too dogmatically despite their widespread use. ...
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