[[Actuarial Notes Wiki|Wiki]] / [[Exam 5 (CAS)]] / **Premium Trend** ## Definition ==Premium Trend== is the change in average premium per exposure over time, reflecting rate changes, coverage changes, and exposure inflation. ## Components - Rate level changes - Coverage modifications - Exposure base inflation - Mix of business changes - Limit profile shifts ## Relationship to Other Trends ``` Premium Trend ≈ Rate Change + Exposure Trend + Mix Changes Used less commonly than loss/exposure trend More relevant for premium projections than ratemaking ``` ## Related Concepts - [[Loss Trend#Definition]] - [[Exposure Trend#Definition]] - [[On-Level Premium#Definition]] ## References - Werner & Modlin, Chapter 8