Table 4 |
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Premium Overcharges for Bodily Injury Liability Automobile Insurance |
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1996 Voluntary Market, Rate-Regulated BI Liability |
||||
1 |
Incurred Loss and ALAE Ratio |
48.0% |
||
2 |
Loss Development |
1.000 |
||
3 |
Ultimate Loss and ALAE Ratio |
48.0% |
||
4 |
ULAE |
1.120 |
||
5 |
Ultimate Loss and LAE Ratio |
53.8% |
||
6 |
Variable Expenses |
7.8% |
||
7 |
Fixed Expenses |
9.6% |
||
8 |
Percentage Excessive |
41.7% |
||
1997 Voluntary Market, Rate-Regulated BI Liability |
||||
1 |
Incurred Loss and ALAE Ratio |
45.5% |
||
2 |
Loss Development |
1.059 |
||
3 |
Ultimate Loss and ALAE Ratio |
48.2% |
||
4 |
ULAE |
1.120 |
||
5 |
Ultimate Loss and LAE Ratio |
53.9% |
||
6 |
Variable Expenses |
7.8% |
||
7 |
Fixed Expenses |
9.6% |
||
8 |
Percentage Excessive |
41.5% |
||
Premium Overcharges for Bodily Injury Liability Automobile Insurance |
||||
1998 Voluntary Market, Rate-Regulated BI Liability |
||||
1 |
Incurred Loss and ALAE Ratio |
47.6% |
||
2 |
Loss Development |
1.059 |
||
3 |
Ultimate Loss and ALAE Ratio |
50.4% |
||
4 |
ULAE |
1.120 |
||
5 |
Ultimate Loss and LAE Ratio |
56.5% |
||
6 |
Variable Expenses |
7.8% |
||
7 |
Fixed Expenses |
9.6% |
||
8 |
Percentage Excessive |
38.8% |
||
Notes: See Technical Appendix for Explanation of Methodology |
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