Greetings Go Actuaries!
Is there any commonly accepted, perhaps even, on a syllabus actuarial literature that supports using net trend as a guiding principle when making actuarial selections?
Sure, during the indication process we need to select, distinctly, loss frequency, loss severity, and premium trend(possibly exposure trend depending on the line i suppose). But is there any actuarial literature which supports the process of backing into a reasonable net trend? Like, you may select premium and severity trend per normal, but you may select frequency trend counter to some of the data, to end up at a reasonable net trend?
I suspect this is an issue primarily with low credibility lines, as larger lines should have data in the premium and loss trend selections to make those selections in a vacuum, but still produce reasonable net trend results.
Till all are one,
Epistemus