In year a, total expected losses are 10,000,000. Individual losses in year a have a Pareto distribution with α = 2 and θ = 2,000. A reinsurer pays the excess of each individual loss over 3,000. For this, the reinsurer is paid a premium equal to 110% of expected covered losses. In year b, losses will experience 5% inflation over year a, but the frequency of losses will not change. Determine the ratio of the premium in year b to the premium in year a.