✅ What is loss ratio? | Reinsurance tutorials #30

SOLVED: An insurer expected a loss ratio in the previous year of 65%, but the actual loss ratio was 87%. Using the loss ratio ratemaking method, what should the insurer do to rate?a) Increase the rate by less than 20%b) Increase the rate by more than 20%c) Decrease the rate by less than 20%d) Don't make any change to the ratee) Decrease the rate by more than 20%Please explain how you reached your answer. Thank you.

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