Rsk 4803 Study guides, Class notes & Summaries
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![RSK4803 ASSIGNMENT+SUGGESTED SOLUTIONS-2020.pdf](/docpics/5018040/661e8d9cdebc2_5018040_121_171.jpeg)
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RSK4803 ASSIGNMENT+SUGGESTED SOLUTIONS-2020.pdf
- Exam (elaborations) • 7 pages • 2024
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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...
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