2019 Fall #12, part d
For the 2022 Fall sitting, since ON has amended 85% of sharing (premium and loss) to 100% cession, the calculation for part d would be direct division right? 600/950
And this question doesn't mention PEA, if it was mentioned, I need to add in the Co.EP(ceded)*PEA in my premium. Is that right?
Also, the bulletin mentioned the 50-50 "Members should also be aware that no change
is proposed at this time to the Ontario Risk Sharing Pool sharing formula, which will retain its current
structure of loss sharing based 50% on market share, and 50% on pool usage."
How should I incorporate this rule into the calculation?
Thank you so much
Comments
Yes, that is correct for the first question. Also correct for the second question. I don't think we have seen a question on that yet, but you would weigh the losses with a weight based on market share ((Company EP/ Total EP) + pool usage (non-ceded EE/Total non-ceded EE))X0.5XPool losses? I am not 100% sure on the split between market share and pool losses @graham what do you think?
I'm not absolutely sure either. I don't think that was even discussed in the original reading. It was only mentioned in the bulletin in the 2022-Fall syllabus but not further explained. I think you can pretty safely ignore that.