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.