Automobile Bodily Injury Liability Rate-Making on a Prospective Basis

Anyone who has worked in the field of Automobile Insurance Rate Making in the last few years is well aware of the necessity of having rates reflect loss costs actually incurred during the period of time that they are in effect. Although this is a perfectly obvious statement, underwriting results of recent years, especially in the Automobile Bodily Injury Liability field, eloquently demonstrate that this goal is rather elusive.