Recommend a final rate change that weighs the indication against operational, marketing, and regulatory constraints and customer lifetime value.
Free CAS Exam 5 (Basic Ratemaking and Reserving) lesson in Ratemaking. 27 min read, ~3,993 words.
The indicated rate change is the starting point, not the answer; the selected change is a judgment that weighs the indication against real-world constraints. Regulators judge rates against three standards: not excessive, not inadequate, and not unfairly discriminatory. Prior-approval states can force a smaller filed change than indicated. The underwriting...
Read the full lesson, free →
Worked examples and practice. Free with a free account, no card.
What this lesson covers
- Content
- Example 1
- Example 2
- Example 3
- Example 4
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- A13
Browse all free Exam 5 lessons or jump into free Exam 5 practice questions.