A premium calculator requires three key elements:
-
Rate file
A rate file will typically contain all the rating tables needed to rate a policy. -
Rating algorithm
This defines the calculations needed to produce a rate using the rate file given a set of policy characteristics. -
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.
