The Practice of Experience Rating

The practice as opposed to the theory of experience rating may mean either of two things. It may mean the actual application of a plan to the routine rating of individual risks, or it may imply the development of a practical plan from fundamental theoretical principles. It is the purpose of this paper to deal almost exclusively with file second phase. The subject will be taken to embrace all the interesting considerations found in connection with the formulation of a plan of experience rating from the theory recently developed by the Actuarial Section of the National Reference Committee.*