Multiple Coverage Experience Rating Plan

With the exception of Workmen’s Compensation, experience rating plans for casualty lines have not been materially altered for many years despite radical changes in the business to which they have been applied. The pertinent changes which suggest a re-evaluation of our experience rating plans are ( 1) an ever increasing settlement cost of claims, (2) intensifying competition, (3) a narrowing of profit margins, (4) increasing use of EDP machines, and (5) the trend toward packaging of casualty coverages in a single policy or a limited number of separate policies.