Homeowners Insurance Ratemaking

The approach taken in this paper is a little different from some other ratemaking papers in that no specific historical development was attempted. The only historical background felt to be needed was the “invention” of the homeowners policy in the 1950’s and the introduction of a more detailed statistical plan in the 1960’s. Because the homeowners policy is not much beyond its infancy, or at most adolescence, it is not surprising to find changes in ratemaking techniques occurring more frequently for this line of insurance. These changes are generally inspired by new insights into the nature of the coverage or by greater awareness of the statistical plan capabilities.