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  #101  
Old 03-16-2020, 05:26 PM
morita morita is offline
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does anybody know why in ratemaking we adjust the losses for inflation and we don't do the same with the premium? i remember reading the reason somewhere but I can't find it right now.

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  #102  
Old 03-16-2020, 05:33 PM
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does anybody know why in ratemaking we adjust the losses for inflation and we don't do the same with the premium? i remember reading the reason somewhere but I can't find it right now.

Thanks
Because the question you're looking to answer is "do I need to change the rates". So you're assessing if the current rate level* will cover all expected expenses in the future time period (and if not, how much should you change things in the aggregate).



*If your rate plan has an "inflation sensitive" exposure base, you would apply an appropriate inflation adjustment to account for that. For example, home value generally appreciates over time. If you automatically adjust that in your rating process, you want to also include that in adjusting premiums.
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  #103  
Old 03-16-2020, 08:22 PM
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does anybody know why in ratemaking we adjust the losses for inflation and we don't do the same with the premium? i remember reading the reason somewhere but I can't find it right now.

Thanks
I'm not sure if I understand the question correctly but by "inflation" do you mean just continuous changes that occur over time? If so, then we do account for such changes through "premium trend."
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  #104  
Old 03-17-2020, 02:00 PM
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Originally Posted by Vorian Atreides View Post
Because the question you're looking to answer is "do I need to change the rates". So you're assessing if the current rate level* will cover all expected expenses in the future time period (and if not, how much should you change things in the aggregate).



*If your rate plan has an "inflation sensitive" exposure base, you would apply an appropriate inflation adjustment to account for that. For example, home value generally appreciates over time. If you automatically adjust that in your rating process, you want to also include that in adjusting premiums.
Ok! I was a little confused... We do adjust premium to the average rate level and to account for inflation we should adjust the exposures... am i right?
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  #105  
Old 03-17-2020, 02:03 PM
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Originally Posted by ronaldy27 View Post
I'm not sure if I understand the question correctly but by "inflation" do you mean just continuous changes that occur over time? If so, then we do account for such changes through "premium trend."
Yes, I meant inflation as a continuous change... isn't the premium trend an adjustment just for the average rate level?
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  #106  
Old 03-17-2020, 03:05 PM
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Exam is postponed indefinitely...
Check your email for the official CAS response.
They hope to administer exams in Mid-June and if that becomes a reality would give at least 6 weeks notice they say.
Very frustrating to have to throw my current timeline out the window to say the least.
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  #107  
Old 03-17-2020, 03:16 PM
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Very unfortunate situation. Goes without saying, anyone using my material will receive an extension until the exam takes place (I read in another thread TIA is doing the same across all their exams as well).
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  #108  
Old 03-17-2020, 03:26 PM
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Originally Posted by Jim Bedford View Post
Very unfortunate situation. Goes without saying, anyone using my material will receive an extension until the exam takes place (I read in another thread TIA is doing the same across all their exams as well).

Thank you Jim! It was only two candidates in my area, me and co-worker but I understand the decisions.


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  #109  
Old 03-17-2020, 03:31 PM
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Any legit estimates of when they'll be back?
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  #110  
Old 03-17-2020, 04:13 PM
JohnTravolski JohnTravolski is online now
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Does this mean that mid June is the absolute earliest we would take the exams? Or is it possible that if things get better then they could still take place in April (or May, for example)?
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