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 distribution for 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 be attributed to the above mentioned factors. Alternatives to the present formula will be proposed.
Volume
LXVII
Page
110-143
Year
1980
Categories
Actuarial Applications and Methodologies
Ratemaking
Retrospective Rating
Publications
Proceedings of the Casualty Actuarial Society
