Ratemaking Procedures for Automobile Liability Insurance [Discussion]

Mr. Stern’s review of automobile liability insurance ratemaking procedures used by the major rating organizations updates his previous paper on the same subject by reflecting some of the more important ratemaking modifications of the past ten years. This admirable revision, intended as before to introduce the fundamentals of a complex subject, is no patchwork product but a thorough reformulation of the subject. It is clearer and more logically organized than the original essay, which was itself a highly valuable contribution to the Proceedings of the Society. The paper will, I feel sure, be read with profit both by actuarial students and those non-actuaries who would gain some insight into the automobile ratemaking mysteries.