3 ms·
Inverse of loss ratio answers the question "Would I pay $5 to purchase $1 of claims with an expected value of $1?" No; you'd pay far closer to $1.20.
by patio11 10y ago
Inverse of loss ratio answers the question "Would I pay $5 to purchase $1 of claims with an expected value of $1?" No; you'd pay far closer to $1.20.