No-Split Experience Rating Plans

As experience rating evolved over the years, a great deal of effort went into the refinement of the multi-split experience rating plan of Workmen’s Compensation. Perhaps because of this emphasis, attention has been directed away from no-split experience rating plans. The purposes of this paper are: to draw together some ideas on no-split plans by comparing a no-split compensation plan with the multi-split compensation plan, to measure these two plans as to their ability to respond to theoretical requirements and to discuss these implications on currently used no-split plans in lines of business other than Workmen’s Compensation.