Insurance Ratemaking: Pure Premium, Loss Trends & Rate Indications

About this course

An insurance ratemaking course that prices one fictional auto insurer's book in a spreadsheet, for actuarial students, underwriters, insurance analysts and product managers. You split written premium into earned and unearned with the mid-month rule and measure car-years of exposure, break five accident years of losses into claim frequency and severity and the pure premium, fit an annual loss trend and build the trend factor from the trend period, develop reported losses to ultimate and trend them to the future policy period, restate past premium at current rates with a rate level index and the parallelogram method, turn on-level loss and LAE ratios into an indicated rate change with the loss ratio method, load the pure premium with expenses and profit into a gross rate and rate four policies with base rate × territory × class relativities. Educational, not affiliated with the CAS. The first lab is free.