Workmen's Compensation D-Ratio Revision

D-ratios are the ratios of primary losses to total losses where the amount of primary loss corresponding to a specified total loss is as defined ill the multi-split experience rating plan. The classification D-ratios are a very important element in the multi-split experience rating process and the experience modification, for a risk having appreciable credibility, is largely dependent upon the D-ratios. Thus it seems necessary that as much care be taken in the revision of classification D-ratios as in the revision of the rates to which such D-ratios are to be applied in the experience rating process. I t is the purpose of this paper to present a method for the revision of D-ratios, which utilizes all of the data available and which is designed to produce as accurate D-ratios as possible.