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Insurance & Risk Management
6. Chapter 6: Insurance Company Operations/Rating and Ratemaking
6. Chapter 6: Insurance Company Operations Illustration
Syllabus Slides

Rating and Ratemaking

01.Core Concepts

Total premiums charged must be adequate for paying all claims and expenses during the policy period Rates and premiums are determined by an actuary, using the company’s past loss experience and industry statistics Actuaries also determine the adequacy of loss reserves, allocate expenses, and compile statistics for company management and state regulatory officials.