At mid-year, Highhill Insurance Company (HIC) has experienced an increase in its YTD actual loss ratio compared with its target. The following chart shows its YTD loss ratio results as compared to its goals. Based on this information, which one of the following factors is likely to be contributing to HIC's higher loss ratio?

At mid-year, Highhill Insurance Company (HIC) has experienced an increase in its YTD actual loss ratio compared with its target. The following chart shows its YTD loss ratio results as compared to its goals. Based on this information, which one of the following factors is likely to be contributing to HIC's higher loss ratio?



A. Loss severity
B. Loss frequency
C. Unrealistic goals
D. Too early to tell


Answer: A. Incorrect. Loss severity, as the per loss average is running above the goal (121%).

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