Ratemaking and Reserving for Casualty Insurance - ACS 607

This course covers the following topics: finding policy premium using Rate Manuals, exposure aggregation methods (written, earned or in-force exposures, calendar year, policy year or accident year accumulation, use of premiums for ratemaking (written, earned or in-force premiums, effect of law changes, rate changes, premium trend and adjustment for coverage, parallelogram method). It also covers use of loss and loss adjustment expenses for ratemaking, underwriting expense provision, overall rate level indication using the pure premium and loss ratio methods, segregation of data into homogenous groups, calculation of rate differentials for each classification, implementation of rates to achieve firm’s goals, and determination of premium for policies with coinsurance. This course covers almost 50% of CAS (Casualty Actuarial Society) Exam 5 (Basic techniques for Rating and Estimating Claim Liabilities).