Abstract
The purpose of this paper is to address the following question. Should the present retrospective rating formula be modified to account for the claim severity of the risk being insured, and for the loss limit chosen for the plan? It will be shown that there are significant differences in premium adequacy that can attributed to the above mentioned factors. Alternatives to the present formula will be proposed.
Keywords: Ex/Individual Risk Rating Plans, Claim Size Modeling, Loss Distribution
Volume
May
Page
323-354
Year
1980
Categories
Actuarial Applications and Methodologies
Ratemaking
Retrospective Rating
Publications
Casualty Actuarial Society Discussion Paper Program
