Formulas for RMI Exam 1

Formulas for RMI Exam 1 - Formulas for RMI Exam#1 How to...

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Formulas for RMI Exam #1 How to calculate Expected Loss : E(L)= (Probability * Loss Amount) + … Hot to calculate Standard Deviation of Losses : VAR(L)= Prob(Loss Amount- Expected Loss) 2 + … Percentage Change for Identical Exposures : δ (L/n)= SD of Losses/ √# in the pool= X ∆change= (x-SD of losses)/ SD of losses What is the expected amount in total the insurer expects to have to pay when insuring this group of X: Total= Expected loss * X Current Year Loss Ratio : = Losses Earned + LAE / Earned Premiums if 0.5 very good Underwriting Expense Ratio : Underwriting expenses**/ premiums written
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