Venter's Experience Rating-Equity and Predictive Accuracy

Lawn,Yin ( (no email) )
Tue, 21 Jul 1998 09:00:00 -0500

In Venter's paper, he states two primary purposes of experience rating
plan: Satefy incentive and predictive accuracy. He later on states that
satefy incentive value can not be used to defined equity. Does he imply
that predictive accuracy can be used to defined equity? I'd like to say
yes, because although he didn't stated that explicitly, some arguments
in his paper seem to support that view. Comments?

---Yin