Plymouth Rock Assurance Interview Question: Picture a line graph represen... | Glassdoor

Interview Question

Commercial Underwriter Interview Boston, MA

Picture a line graph representing the entire book of

  business with the age of accounts listed on the x-axis and the average loss ratio on the y-axis. This type of graph tends to have high loss ratios in years 1 and 2 and then depict a decreasing trend in successive years. Why do you feel that this is the case?
Answer

Interview Answer

1 Answer

1

Accounts with losses in years one or two tend to self-select to other carriers due to increasing premium or get non-renewed. This creates a declining trend after poor loss history in years one or two.

Interview Candidate on Apr 25, 2014

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