I’m trying to create a loss limitation / firs-loss pricing table for homeowners and was hoping to create an exposure curve from our data. I have: 1) a clean dataset with losses, limits and deductibles, 2) a basic understanding of R and 3) repressed memory of related exam materials.
Can anyone help point me in the right direction? Would I be better off industry tables, if available?
Do you have the underlying insured value? If so could create an exposure curve, but depends on how many losses you have. If you don’t then the usefulness of any loss elimination table you created will be minimal unless you have a very stable underlying insured value book.