Price Optimization and Professionalism

This presentation discusses professionalism issues for actuaries concerning the use of price optimization in setting insurance rates. The presentation provides background on the topic of price optimization. It discusses the issue in light of proposed changes to the Casualty Actuarial Society’s Statement of Ratemaking Principles and compares the changes to similar changes the organization made in rewriting the Statement of Principles Regarding Property and Casualty Loss and Loss Adjustment Expense Reserves.


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