Licentiate Examination - IC 11 - Practice of General Insurance Exam - Important Points
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Investment income does not form part of the book price formula
Soft Market - When insurance companies undercut each other to grab market share by reducing premium it is known as soft market.
In a 'hard market', insurance companies will often increase premiums and take back some of the coverage enhancements, they provided during the soft market.
Pure Premium = Total Amount of Claims Incurred per Year divided by the number of exposure units.
The claims loading applied to a policy is known as Claims Malus.
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