A Suggested Modification in the Policy Year Method of Compiling ExperienceData for the Making of Automobile Insurance Rates

With the development of scientific methods for the making of rates for the automobile casualty coverages (liability, property damage and collision), there is noticed an increasing tendency to "refinement" in the utilization of experience data. Consideration is being given to such matters as increasing (or decreasing) cost, credibility of experience and stability of rates, more limited territorial divisions, etc. (See recent papers in the Proceedings-- "A Suggested Method for Developing Automobile Rates" by Harmon T. Barber, Volume XV, page 191, and "Credibility and Automobile Rate Making" by Roy A. Wheeler, Volume XVI, page 268. Reference should also be made to Mr. Stellwagen's comprehensive paper entitled "Automobile Rate Making," Volume XI, page 276.)