What's the difference between participation ratio and how much is transferable? and how come one uses total voluntary non fleet PPA TPL earned exposures and the other written exposures?
The participation ratio determines how much of the pool experience an insurer 'assumes' or is responsible for - they get this % of pool premium and must pay this % of pool losses.
The transfer limit determines how much an insurer can cede to the pool.
Comments
The participation ratio determines how much of the pool experience an insurer 'assumes' or is responsible for - they get this % of pool premium and must pay this % of pool losses.
The transfer limit determines how much an insurer can cede to the pool.
Yes, the above is the correct explanation