Calculation of Experience Rating Values and Plan Parameters

Experience Rating is an essential part of the pricing of Workers' Compensation insurance. This monograph describes some of the actuarial tasks necessary to keep the plan functioning properly. The description is technical in nature, aimed primarily at the actuarial student. The other essential part of pricing Workers' Compensation is rate making. There is ample material available documenting this part of the process which should be reviewed before entering the special realm described here. We begin with a description of the data elements which underly the pricing process. Keywords: Workers Compensation, Experience Rating Plans