Kerper and Bowron LLC

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ratemaking for maximum profitability

September 12, 2001

Ratemaking For Maximum Profitability – appears in the 2001 Winter Forum Ratemaking Discussion Papers-The goal of ratemaking methodologies is to estimate the future expected costs for a book of business. However, if one looks at the rate activity in a market, it is apparent that company actions do not always follow the indications. Surprisingly, such decisions often lead to successful results. It seems that there must be something going on that is invisible to the naked eye? Do indications really mean so little? Or are there other factors, buried data that is difficult to quantify?

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