Chapter 9 Glossary Flashcards
1
Q
Claim cost inflation
A
The rate of increase in the cost of like-for-like claim payments
2
Q
Hard premium rates
A
High, profitable premium rates
3
Q
Insurance cycle
A
The observed tendency of insurance prices and hence profitability to vary over a period of several years
4
Q
Soft premium rates
A
Premium rates with significantly reduced margins due to the competitive state of the market
