Abstract
The issue of profitability of the major lines of Automobile and Workers' Compensation insurance in Massachusetts has been handled on an ex-ante formula basis since 1975. Beginning with Commissioner James M. Stone's Automobile Bodily Injury/Liability Decision for 1976 state set rates, explicit account has been taken of investment income. Although the computational techniques have changed over the years, the common thread has been to attempt to allow insurers a fair return on their equity.
Keywords: Investment Income, Profit Factor, Rate of Return, Risk
Volume
Fall
Page
197
Year
1991
Categories
Actuarial Applications and Methodologies
Ratemaking
Trend and Loss Development
Investment Income
Actuarial Applications and Methodologies
Regulation and Law
Rate Regulation
Financial and Statistical Methods
Risk Pricing and Risk Evaluation Models
ROE
Publications
Casualty Actuarial Society E-Forum
