Market statistics

Document description

Market statistics can be collected for a number of very different reasons, but in this paper we shall be considering the collection and interpretation of market statistics to be used by a company in establishing relative risk premiums. We are less concerned with the fixing of absolute levels of rates, but more with the provision for individual companies, of standard tables of relativities for different risk groups, while at the same time providing a more valid assessment of these relativities for those risks in extreme cells, where an individual company has very little data. There should be other by-products to such a statistical system such as claims distributions by delay and amount and overall trends produced both regularly and ad hoc. These will be of help to the industry and the individual company in calculating such things as technical reserves, levels of reinsurance, I.B.N.R., overall premium movement, market research etc.