loss frequency

Why Should We Measure Loss Severity?

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Why Should We Measure Loss Severity? Why should we measure loss severity? Measured to help determine risk classification and determination of transfer amounts. … The reading “A Scientific View of Risk” has a different definition of risk than we have used in class. What is loss severity? Severity — the amount of damage that is

What Is Frequency In Risk Management?

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What Is Frequency In Risk Management? Frequency refers to the number of claims an insurer anticipates will occur over a given period of time. Severity refers to the costs of a claim—a high-severity claim is more expensive than an average claim, and a low-severity claim is less expensive. What is frequency risk? Frequency — the