Study guides, Class notes & Summaries

Question 3.1 (15) The average damage per accident in 2018 was R100 000 and the administration cost R10 000 per claim, which gives an average of R110 000 for 2018, and total claims cost of R5 500 000 for the year. Claims inflation forms a significant component of the total claims cost per accident and for that reason it is important to include claims inflation in the projections. For the purpose of this exercise, the CRO defined claims inflation as the administration cost and effect of exch...