Commercial Package Policies - Rating and Statistics

Commercial multiple peril package policies have been in existence since 1958 and at this time are still new enough so that they have not yet really passed beyond the evolutionary or seasoning stage. As a result, they should not be considered as having settled into any rigid or finally determined procedures insofar as rating and statistical plans are concerned, nor should any of the practices brought over from the individual lines of insurance be considered immutable. Having already demonstrated their present and potential importance with a premium volume in 1962 of over $150,000,000, it is vital that the ratemakers give consideration to the best method of handling this business. As a preliminary to discussing this problem, it is necessary to review briefly some of the events and developments of the past decade or so.