Abstract
Merit rating is the use of the insured's actual claim experience to predict future claim experience. This paper discusses merit rating for professional liability insurance for both individual doctors and group practices. The paper presents several different theoretical formulations for merit rating. Credibilities are stated in terms of the parameters of the risk process. The paper discusses several methods of estimating the key parameters, along with sample data. Finally, the paper discusses several practical considerations in the design of a merit rating formula.
Medical Malpractice, Credibility, Merit Rating
Volume
Special Edition
Page
495-573
Year
1993
Categories
Actuarial Applications and Methodologies
Ratemaking
Classification Plans
Actuarial Applications and Methodologies
Ratemaking
Experience Rating
Financial and Statistical Methods
Loss Distributions
Frequency
Business Areas
Professional Liability
Medical Malpractice -Occurrence
Financial and Statistical Methods
Statistical Models and Methods
Regression
Financial and Statistical Methods
Credibility
Publications
Casualty Actuarial Society E-Forum
