This is a most simplified rating plan taking into the consideration of 10 significant peril risks into account using the experience data.
It considers also the variation of these perils by state and integrated all the significant risks. This would help home owners to pay the lower premium for more coverages. At the same time, company could build up reserves to pay the claims coming from several perils.
This is a most simplified rating plan taking into the consideration of 10 significant peril risks into account using the experience data.
It considers also the variation of these perils by state and integrated all the significant risks. This would help home owners to pay the lower premium for more coverages. At the same time, company could build up reserves to pay the claims coming from several perils.
James Shah, Actuary