Private Passenger Auto (PPA) Ratemaking Data

This is data taken from Appendix A of the "Basic Ratemaking" study note by Werner and Modlin.

Rate change

This is a data frame with 7 observations of 5 variables.

  • RateGroup: Letters from A-G. Note that rate group "A" does not have any rate changes.

  • EffectiveDate: The effective date of the rate change.

  • RateChange: A number indicating the rate change. Note that this is NOT done as a percent, i.e. .05 = 5

  • RateLevelIndex: This is one plus the rate change.

  • CumulativeRateLevel: This is the cumulative product of the RateLevelIndex. Note that this varies slightly from the figures shown in the study note. I believe this is due to rounding in the study note.

Accident year

This is a data frame with 5 observations of 4 variables.

  • AccidentYear: The accident year.

  • EarnedExposure: The exposure earned for the accident year.

  • EarnedPremium: The premium earned for the accieent year.

  • ReportedLoss: The reported loss and paid ALAE for the accident year.

Premium trend

Data frame with 25 observations of 3 values. The premium is shown at current level. This may be used to determine premium or exposure trend.

  • QuarterEnding: The ending quarter as a Date type.

  • WrittenPremium: Premium written during the quarter at current rate level.

  • WrittenExposure: Exposure written during the quarter.

Loss development

Data frame with 25 observations of 3 values. Note that this loss development data is stored in "long" rather than "wide" format.

  • AccidentYear: The accident year as an integer.

  • Lag: The lag in months as an integer.

  • ReportedLoss: The reported loss and paid ALAE for that accident year and lag.

Loss trend

Data frame with 20 observations of 7 values. The data may be used to estimate loss trend.

  • YearEndingQuarter: The end of a one-year period as a Date.

  • EarnedExposure: The exposure earned during the period.

  • ClosedClaimCount: The number of claims closed during the period.

  • PaidLosses: The amount of loss paid during the period.

  • Frequency: The closed claim count divided by the exposure.

  • Severity: The paid losses divided by the closed claim count.

  • PurePremium: The paid losses divided by the earned exposure.

ULAE

A data frame with 3 observations of 4 values.

  • CalendarYear: The calendar year as an integer.

  • PaidLoss_ALAE: The paid loss and ALAE for the calendar year.

  • PaidULAE: The ULAE paid in the calendar year.

  • ULAE_Ratio: The ratio of ULAE to the paid loss and ALAE.

data(PPA)