SPRING 2013 Q3 - PERMISSIBLE LOSS RATIO
In the solution, they've taken the weighted average of the permissible loss ratio to be 0.67.
I'm wondering how they've assumed the split with regard to the dates. Why has 1/1/13 to 7/1/2013 been taken instead of the full accident year? I understand that there is a change in the rates effective from July 01 2013. Then shouldn't a time period prior to AY 2013 be taken in to consideration?
Comments
I think you meant to reference a different question. This doesn't seem to be about Spring 2013 Q3.