Commercial Lines Price Monitoring

This paper examines price monitoring techniques for the commercial lines of property/liability insurance. Section 1 discusses the rationale for commercial lines price monitoring. Next, Sections 2 and 3 cover the two major categories of price monitoring reports: renewal rate change reports and overall rate level change reports. Section 4 considers the subtle relationship between manual rate changes and experience rating factors. Section 5 includes a short note on the concept of insurance-to-value and increases in exposure units. Finally, Section 6 concludes with some brief comments on the importance and role of price monitoring in the property/liability industry.