The Determination of Pure Premiums for Minor Classification on which the Experience Data is Insufficient for Direct Estimate

In the several papers in our PROCEEDINGS and in the TRANSACTIONS OF THE ACTUARIAL SOCIETY OF AMERICA dealing with compensation premium or rate making, the starting point has been a classification pure premium derived by the well-known formula, (formula). It has been generally recognized that it will be impossible to determine the pure premiums in this way for each classification, and that some process of association must be resorted to in order to develop premiums for those classifications where the data is insufficient.*