Jim Daniel's STAM Seminar Excerpts

Rate-making for the overall average rate

Rate-making for the overall average rate describes rate-making for the overall average rate, including both the pure-premium (or loss-cost) method and the loss-ratio method. It contains about 5.5 pages of text. Here is the table of contents:

  • 1.1 Overview and an "Equivalence Principle"
  • 1.2 The loss-cost (or pure-premium) method of rate-making
  • 1.3 The loss-ratio method of rate-making
    • 1.3.1 The parallelogram method for adjusting to the current rate
  • 1.4 Credibility-weighted rates

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