The exposure is split into three geographic regions: region A, region B and region C. The following accident year 2 data is available:

Suppose the following is true:

• Loss cost inflation is 5% per annum.
• There are no fixed and variable underwriting expenses.
• The insurer is targeting a profit percentage of 15% while retaining current rate relativities.

The insurer determines, using the loss ratio method, that rates should be increased by 10% for calendar year 3. Determine the earned premium at current rates during accident year 2 for region B.

The exposure is split into three geographic regions: region A, region B and region C. The following accident year 1 data is available:

Suppose the following is true:

• Policies are annual.
• Loss cost inflation is 4% per annum.
• There are no fixed or variable underwriting expenses.
• The insurer is targeting a profit percentage of 20%.

Using the loss ratio method, determine the rate change % for region A.

• +27.58%
• +28.15%
• +30.56%
• +31.17%
• + 32.97%