CLIPS results indicate that accident-year-to-date 2010 loss ratios deteriorated 4% relative to year-to-date 2009. This deterioration — which is based on six months of information and is therefore preliminary — is consistent with an estimated deterioration of 4% for accident-year 2009 over 2008. The firmer prices in year-to-date 2010 on an earned basis are offset by somewhat higher claim cost inflation indications than that observed in 2009.
So if your company booked a 60% loss ratio in AY2008, your actuarial consultants are assuming you should be at 64% for 2009 and 68% at year-end 2010.
If you ain’t there, you’ll need to explain why not.