Building a Premium Calculator

A premium calculator requires three key elements:

  1. Rate file
    A rate file will typically contain all the rating tables needed to rate a policy.

  2. Rating algorithm
    This defines the calculations needed to produce a rate using the rate file given a set of policy characteristics.

  3. Policy input file (with all key rating factors)
    This contains a list of policies that rates need to be calculated for. Generally a process will need to be applied to ensure all necessary rating variables are attached to each policy.

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