Rate Revision Adjustment Factors [Discussion]

The paper “Rate Revision Adjustment Factors” by LeRoy J. Simon is essentially an analysis of the mathematics underling the adjustment of current rates to reflect loss ratios experienced under the premium rate structure formerly in effect. Early in the article, the author points out that the rate revision factor will, most frequently, be of significance with coverages for which the pure premium method is not applicable because the official Stat plans do not provide an exposure base. Probably, fire and allied lines would constitute a most typical environment within which the techniques discussed in this paper might be applied although there are probably instances when they would be equally pertinent to casualty lines.