RE: casnet Digest for 16 Feb 1998

Feldblum-Sholom ( (no email) )
17 Feb 1998 16:55:16 GMT

Re Steve's reply: see also "Personal Auto Premiums" (PCAS 1996). Effect differs
for new business production versus policyholder retention. Question is usually
phrased (improperly) regarding policyholder retention when ultimate effect on
long-term profitability stems from new business production (because of strong
retention under most scenarios). Data in "Personal Auto Premiums" come from a
14 year study of the major U.S. direct writers, based on rating manual exchanges
in the 1970s and 1980s. [The actual data are confidential, so they are not
reproduced in the paper.]
_______________________________________________________________________________
From: UNIX.CASNET on Tue, Feb 17, 1998 4:40 PM
Subject: RE: casnet Digest for 16 Feb 1998
To: ˙˙CASNET˙(UNIX.CASNET); Feldblum-Sholom

> Paul
>
> I don't know of any specific study, but when I worked for CUMIS we
> noticed that retention declined measurably if we raised rates more
> than 10 percent. This was during the 1970s. Smaller increases, which
> we took regularly, did not seem to have a noticeable effect.
>
> Steve D'Arcy
>
> -----Original Message-----
> From: caslists [SMTP:caslists@casact.org]
> Sent: Monday, February 16, 1998 11:01 PM
> To: SDARCY@COMMERCE.CBA.UIUC.EDU
> Subject: casnet Digest for 16 Feb 1998
>
>
>
>
> Visit the CAS Web Site at http://www.casact.org
> ===============================================
> To subscribe or unsubscribe from CASNET:
> Send an e-mail to caslists@lists.casact.org
> Type in the body join casnet to subscribe
> or leave casnet to unsubscribe.
>
> casnet Digest for 16 Feb 1998
>
> Topics covered in this issue include:
>
> 1: Price/Demand Elasticity
> by "Paul Klauke/CorpCentre/GB/GRE-Group at
> GRE-GROUP KLAUKE01 - GBGRE002" <paul_klauke@gre-group.e-mail.com>
>
>
>
>
> ----------------------------------------------------------------------
> ----
> 1 Message:0001
> 1
>
> ----------------------------------------------------------------------
> ----
> From: "Paul Klauke/CorpCentre/GB/GRE-Group at GRE-GROUP KLAUKE01
> - GBGRE002" <paul_klauke@gre-group.e-mail.com>
> To: casnet@lists.casact.org
> Subject: Price/Demand Elasticity
>
> ======================= GUARDIAN ROYAL EXCHANGE GROUP
> =======================
>
>
> Guardian Royal Exchange Services ltd
> Corporate Centre
> Royal Exchange
>
> From Paul Klauke Internal tel 723 5624
> Actuary Direct tel +44 (0) 171 454 5624
> on 16/02/98 12:09 Direct fax +44 (0) 171 696 5336
>
>
>
> -------------------------------------------------------------
>
>
>
> Anybody know of any information on the effect of changing
> premium
> rates on policyholder retention/conversion? (I am a member of a
> group
> doing research on the topic.)
>
> Paul Klauke
> Guardian Royal Exchange plc

Visit the CAS Web Site at http://www.casact.org
===============================================
To subscribe or unsubscribe from CASNET:
Send an e-mail to caslists@lists.casact.org
Type in the body join casnet to subscribe
or leave casnet to unsubscribe.

Visit the CAS Web Site at http://www.casact.org
===============================================
To subscribe or unsubscribe from CASNET:
Send an e-mail to caslists@lists.casact.org
Type in the body join casnet to subscribe
or leave casnet to unsubscribe.