Differences between low-severity-high-frequency lines

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1. In the context of Property and Liability insurance, explain the differences between low-severity, high-frequency lines and high-severity, low-frequency lines. For which of these lines will insurance companies charge a higher premium?

2. In the context of Property and Liability insurance, explain the differences between long tail and short tail lines. For which of these lines will insurance companies charge a higher premium?

Reference no: EM13769243

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