Fall 2018 Q7 a)
What is the formula for exposure trend period? How can I know that the trend period is from July 1 2017 to July 1 2019?
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Comments
The exposures are trended from the middle of 2017 to the middle of the period that the reinsurance contract covers which is the middle of 2019. That's 2 years. (The effective date of the rate change isn't relevant.)