Use of National Experience Indications in Workers' Compensation Insurance Classification Ratemaking [Discussion]

Frank Harwayne’s paper, "Use of National Experience Indications in Workers’ Compensation Classification Ratemaking," shows the application of some practical actuarial science to the solution of a lingering problem. The problem: because of low credibility, the rates for some classifications in certain states did not seem to be at, or likely to reach, a reasonable level. The solution: adjust experience from other available states to the exposure distribution and average pure premium level of the state in question and merge it into the classification ratemaking procedure.