The frequency with which losses occur and their severity are two key statistical measures for evaluating loss exposure.

Question

Quizplus · Accepted Answer

The frequency and severity of losses are two important measures for evaluating the risk of loss. Frequency refers to the number of losses that occur over a specific period, while severity relates to the degree of damage or loss resulting from a particular event. These factors are critical in understanding the potential risk exposure and developing effective risk management strategies.

The Frequency with Which Losses Occur and Their Severity Are