1 / 13

Casualty Actuarial Society Ratemaking Seminar March 10-11, 2005

Casualty Actuarial Society Ratemaking Seminar March 10-11, 2005. REG-3 “What Makes a Good Rate Filing?” Timothy L. Wisecarver, FCAS, MAAA, FCA. CAS Ratemaking Seminar What Makes a Good Rate Filing?. For Purposes of This Discussion, “Rate Filing” Will Mean –

hachi
Download Presentation

Casualty Actuarial Society Ratemaking Seminar March 10-11, 2005

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Casualty Actuarial SocietyRatemaking SeminarMarch 10-11, 2005 REG-3 “What Makes a Good Rate Filing?” Timothy L. Wisecarver, FCAS, MAAA, FCA

  2. CAS Ratemaking SeminarWhat Makes a Good Rate Filing? • For Purposes of This Discussion, “Rate Filing” Will Mean – • A Pricing Proposal Submitted to an Insurance Regulator(s) • This Includes but is Not Limited to: • Rate Filings • Loss Cost Filings • Classification Plan Filings • Experience Rating Plan Filings

  3. “Exhibit “A” – Insurance Department Approval Stamp APPROVED EFFECTIVE ________________ PENNSYLVANIA INSURANCE DEPARTMENT BY _____________________________________ CAS Ratemaking SeminarWhat Makes a Good Rate Filing?

  4. CAS Ratemaking SeminarWhat Makes a GreatRate Filing? • Get “Exhibit “A”: • On Your Filing, • Filled In, and • In Your Possession 60+ Days Prior to Your • Proposed Effective Date!

  5. CAS Ratemaking SeminarWhat Makes a Good Rate Filing? • Data • Analytical Foundations for Filings • Presentation • Accessibility • Bureau vs. Company Filings

  6. CAS Ratemaking SeminarWhat Makes a Good Rate Filing? • Data • Quality • Accuracy • Completeness • Verifiability • Credibility • Quantity • Relevance to Proposal(s)

  7. CAS Ratemaking SeminarWhat Makes a Good Rate Filing? • Data • Breadth • Support for Alternative Analyses • Depth • Proof for Summary Data • Validation • Testing of Hypotheses, Scenarios

  8. CAS Ratemaking SeminarWhat Makes a Good Rate Filing? • Analytical Foundation • Understanding the Data • Applying Data to the Filing Question(s) • Accuracy • Relevance • Active & Objective Challenge of Methods, Indications

  9. CAS Ratemaking SeminarWhat Makes a Good Rate Filing? • Presentation • Discussion (in submission) • Illustration • Organization • Explanation (responsive to questions)

  10. CAS Ratemaking SeminarWhat Makes a Good Rate Filing? • Accessibility • to Filer(s) • to Supporting Information • Audience Needs and Privileges May Vary • Regulator • Bureau Members • Intervenors / Other “Active” Reviewers • Insureds • General Public

  11. CAS Ratemaking SeminarWhat Makes a Good Rate Filing? • Bureau Filings • Data from Many Diverse Sources • Primary Utility as a Beginning Benchmark • Often Subject to Prior Approval • Greater Public and Political Interest • Basic Analysis or Analyses • Less Judgmental Intervention in Application • Variety of Data Source Circumstances • Carrier Adaptations Yet to Come

  12. CAS Ratemaking SeminarWhat Makes a Good Rate Filing? • Company Filings • Data from Fewer, More Similar Sources • Serve as a Final Benchmark • Often Not Subject to Prior Approval • Competition (Should) Regulate • Wider Range of Possible Analysis or Analyses • More Judgmental Intervention in Application • Commonality of Data Source Circumstances • Access to Key People, Strategic Information

  13. CAS Ratemaking SeminarWhat Makes a Good Rate Filing? (Examples of Recent Workers Compensation Filings May Be Found Under “Filings” at www.pcrb.com and/or www.dcrb.com) Questions & Answers

More Related