policy year experience
The premium and losses associated with a given annual policy period. The
policy year experience for an individual insurance policy includes each premium
and loss transaction that relates to that particular policy. An aggregate policy
year experience for an entire book of business is calculated by including the
individual experience of all policies that became effective during that year.
For example, 2007 policy year data would include the experience of all policies
effective between January 1, 2007, and December 31, 2007, regardless of the
date on which losses or other events associated with those policies occur. This
approach provides a clear match between losses and premiums. See also
Accident
year data.