Introduction To Ratemaking And Loss Reserving For Property And Casualty Insurance ●

In property and casualty (P&C) insurance, ratemaking loss reserving

Part 3: Ratemaking – Pricing the Future

While loss reserving looks backward, ratemaking looks forward. The goal of ratemaking is to set a price (premium) sufficient to pay all future claims, cover expenses, and provide a reasonable profit—while remaining competitive. In property and casualty (P&C) insurance, ratemaking loss

The National Association of Insurance Commissioners (NAIC) provides model laws and a financial reporting framework (the Annual Statement, including the infamous Schedule P for loss reserves). Rows: Accident Years (AY) (e

• Rows: Accident Years (AY) (e.g., 2020, 2021, 2022).
• Columns: Development Periods (Months/Years) (e.g., 12 months, 24 months, 36 months).