Premium rates – Pricing

Rate making, or insurance pricing, is the calculation of rates charged by insurance companies. The benefit of pricing is to ensure insurance companies are setting fair and adequate premiums given the competitive nature. The concept has many factors to consider. For instance Premiums should be set so that the company can afford to pay the claims, even in the long run. This is why companies also should consider expenses, cost of capital etc. Premiums should be…

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