Actuarial reinsurance premium calculation uses the similar mathematical tools as actuarial insurance premium. Nevertheless, Catastrophe modeling, Systematic risk or risk aggregation statistics tools are more important.
Typically burning cost is the estimated cost of claims in the forthcoming insurance period, calculated from previous years' experience adjusted for changes in the numbers insured, the nature of cover and medical inflation.
"As if" data involves the recalculation of prior years of loss experience to demonstrate what the underwriting results of a particular program would have been if the proposed program had been in force during that period.[1]
Let us note the and the deductible of XS or XL, with the limite ( XS ).
The premium :
where
If and : $
if and il n'y a pas de solution.
If and :
If and :
If follows then follows
Then:
With deductible and without limit :
This method uses data along the x-y axis to compute fitted values. It is actually based on the equation for a straight line, y=bx+a.(2)
Actuarial reserves modellisation.