Department of Finance

 

Date of this Version

1994

Document Type

Article

Citation

Journal of Actuarial Practice 2 (1994), pp. 237-255

Comments

Copyright 1994 Absalom Press

Abstract

Multi-regional insurance base premiums are customarily computed by a top-down method where national or state projections are adjusted to reflect regional differences. This paper proposes a methodology for a bottom-up projection. A weighing scheme that minimizes the variance of the estimator is suggested as a criterion to establish an overall multi-regional rate.

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