# D.01.Bernegger

 Exposure rating similar size risks from same risk category placed in bandsrisks in a band assumed to be homogeneouscan use a single loss dist to modelfit 1 exposure curve per band Exposure curve formula  First loss scales / exposure curves gives proportion of P allocated to limited primary layers% value of imposing a deductiblelimits usually expressed as % of sum insured (SI), maximum probable loss (MPL) or estimated maximum loss (EML) Notes on exposure curve table can allow % > 100% of building value (other covg)implicit assumption that same exposure curve applies regardless of the size of the insured value Analytical exposure curve used when looking for values btwn 2 discrete curves(-) must fill certain conditions which restrict the range of param(-) practical issues w fctns w >2 param Deriving distribution function from exposure curve G(d) is increasing concave on [0,1]G'(d) = [1 - F(d)] / E(X)F(x) = 1 - G'(x) / G'(0)   (1 if x = 1)μ = E(x) = 1 / G'(0)p = 1 - F'(1-) = G'(1) / G'(0)G'(0) ≥ 1 ≥ G'(1) ≥ 00 ≤ p ≤ μ ≤ 1 Unlimited distribution normalize deductible to some other ref loss like sum insdG(d) still concave increasing on [0,1]M = E(x) = 1 / G'(0)G(∞) = 0 (no total loss) MBBEFD class of 2-parameter exposure curves     Curve fitting there exists exactly 1 dist fctn belonging to MBBEFD class for each given pair of functional p and μ if first 2 moments are known we can find g and b Exposure curves used by non proportional prop uwrs can be approximated using subclass of MBBEFDbi, gi evaluated for each curve icurve modeled as a fctn of single parameter cc{1.5,2.0,3.0,4.0} corresponds to Swiss Re curve Y1-4c = 5 corresponds to Lloyd's curve for industrial risks AuthorExam8 ID165927 Card SetD.01.Bernegger DescriptionSwiss Re Exposure Curves and the MBBEFD Distribution Clas Updated2012-08-13T23:28:05Z Show Answers