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Ratemaking Methods and Profit Cycles in Property and Liability Insurance
Insurers and rating bureaus often use regression of past costs, or of loss ratios, on time as a way of estimating future rate requirements. A model of this process suggests that the rates set by such methods would create a quasi-cyclical pattern of underwriting profit margins. The details of the for...
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| Published in: | The Journal of risk and insurance 1985-09, Vol.52 (3), p.477-500 |
|---|---|
| Main Author: | |
| Format: | Article |
| Language: | English |
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| Citations: | Items that cite this one |
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| cited_by | cdi_FETCH-LOGICAL-c270t-29007aed47eb48ddd9e37d266f1b911baed2de139ee6211d8909e4156e99df423 |
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| cites | |
| container_end_page | 500 |
| container_issue | 3 |
| container_start_page | 477 |
| container_title | The Journal of risk and insurance |
| container_volume | 52 |
| creator | Venezian, Emilio C. |
| description | Insurers and rating bureaus often use regression of past costs, or of loss ratios, on time as a way of estimating future rate requirements. A model of this process suggests that the rates set by such methods would create a quasi-cyclical pattern of underwriting profit margins. The details of the forecasting method determine the characteristics of the cylical pattern, so different lines may have different periods or different phases. Empirical data on major lines of property and liability insurance are consistent with the hypothesis that ratemaking methods contribute to the fluctuations of underwriting profit margins. |
| doi_str_mv | 10.2307/252782 |
| format | article |
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A model of this process suggests that the rates set by such methods would create a quasi-cyclical pattern of underwriting profit margins. The details of the forecasting method determine the characteristics of the cylical pattern, so different lines may have different periods or different phases. 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A model of this process suggests that the rates set by such methods would create a quasi-cyclical pattern of underwriting profit margins. The details of the forecasting method determine the characteristics of the cylical pattern, so different lines may have different periods or different phases. Empirical data on major lines of property and liability insurance are consistent with the hypothesis that ratemaking methods contribute to the fluctuations of underwriting profit margins.</abstract><cop>Malvern</cop><pub>American Risk and Insurance Association</pub><doi>10.2307/252782</doi><tpages>24</tpages></addata></record> |
| fulltext | fulltext |
| identifier | ISSN: 0022-4367 |
| ispartof | The Journal of risk and insurance, 1985-09, Vol.52 (3), p.477-500 |
| issn | 0022-4367 1539-6975 |
| language | eng |
| recordid | cdi_proquest_journals_226947397 |
| source | Business Source Ultimate【Trial: -2024/12/31】【Remote access available】; ABI/INFORM global; ABI/INFORM Archive; JSTOR Archival Journals and Primary Sources Collection; EBSCO_EconLit with Full Text（美国经济学会全文数据库） |
| subjects | Autocorrelation Automobile insurance Correlation analysis Costs Cycles Factors Forecasts Hypotheses Insurance industry Insurance providers Insurance regulation Insurance underwriting Liability insurance Methods Profit forecasting Profit margins Property liability insurance Rate setting Rating bureaus Statistical analysis Statistical variance |
| title | Ratemaking Methods and Profit Cycles in Property and Liability Insurance |
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