Introduction To Ratemaking And Loss Reserving For Property And Casualty Insurance -

[ \textGross Premium = \frac\textExpected Losses + \textExpected LAE + \textUnderwriting Expenses + \textRisk & Profit Margin1 - \textPremium Taxes - \textContingency Allowance ]

Actual Claims Paid (Claims Dept) → Reserve Analysis (Actuary) → True Ultimate Loss Cost → Future Ratemaking (Pricing Actuary)