INTRODUCTION
This course provides an understanding of ideal characteristics of ratemaking. It provides deep understanding about rate components as well as ratemaking terms. It gives broad idea about how actuaries are involved in the ratemaking process.It covers pricing methodology both life insurance and non-life insurance.
PROGRAMME OBJECTIVES
- Describing the objectives of insurance rate regulation and the various regulatory environments
- Defining pricing methodology in life insurance
- Calculating expenses used in ratemaking analyses
- Calculating loadings for catastrophes and large claims
- Applying credibility considerations to ratemaking
- Calculating overall rate change indications under the claims ratio and pure premium methods
- Calculating risk classification changes and territorial changes
- Calculating deductible factors, increased limits factors, and coinsurance penalties
- Calculating rates for large accounts
- Performing individual risk rating using standard plans
WHO SHOULD ATTEND?
- Insurance Professionals
- Actuaries
- Brokers
- Agents
- Internal Auditors
- Risk Managers
- Internal Control Officers
- Financial & Accounting Professionals
PROGRAM OUTLINE
- Understanding regulatory objectives in ratemaking
- Understanding key differences in ratemaking in different regulatory environment
- Desribing types of rating
- Defining advantages of each type of rating
- Defining disadvantages of each types of rating
- Understanding meaning of pricing in life insurance
- Describing assumptions in life insurance pricing
- Analyzing demographic assumptions
- Analyzing financial assumptions
- Calculating expenses in life insurance
- Defining exposure base
- Selection of exposure base
- Understanding an organization of data: calendar year, policy year, accident year
- Analyzing written exposure versus earned exposure versus inforce exposure
- Defining the role of exposures in the ratemaking process
- Evaluating catastrophe exposure
- Identification of Catastrophe Perils or Events
- Identification of Catastrophe Losses
- Understanding predominant ratemaking procedures used to determine a catastrophe provision
- Defining ratemaking in aggregate losses
- Analyzing history of credibility
- Understanding the need for credibility
- Calculating risk classification changes and territorial changes
- Calculating deductible factors, increased limits factors, and coinsurance penalties
- Calculating rates for large accounts
