A Current Look At Workers' Compensation Ratemaking [Discussion]

The essence of a sound actuarial ratemaking procedure is a balanced intelligent appraisal of all pertinent information leading to a best estimate of future occurrences translated into unit costs. This suggests that a necessary and important element in the ratemaking process is the continuous evaluation of methods and data bases as they relate to the forces affecting losses and expenses. Without such an evaluation, ratemaking becomes a mechanical process of merely measuring past results without proper focus on the accuracy, stability, and responsiveness of rate levels.