ACTUARIAL-BASICS5 MIN READ
Walk a Pricing Indication From Raw Loss to Rate Need
Sequence a basic future-cost estimate for a property/casualty pricing decision.
The pricing meeting Kai must explain why a good-looking historical loss ratio still produces a rate increase. Each actuarial adjustment answers a specific mismatch between history and the future policy period. Forward-cost chain History -> future cost -> indicated rate A rate indication gets stronger when every adjustment has a job. Shortcut Use last loss ratio A forward-looking indication. Do not price the past; price the risk period. 01 Exposure 02 Trend 03 Credibility 04 Now you try
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