price-to-rate-adequacy

name	price-to-rate-adequacy
description	Price risk to expected loss plus expense plus profit load against loss trend, not to the competitor, so growth doesn't grow a loss. Reach for this on any pricing question.

Skill: Price to rate adequacy

Matching a competitor into an inadequate rate grows into a loss; this prices to adequacy.

Step 1 — Build the indicated rate

Expected loss + expense + profit load against current loss trend (§3 #2).

Step 2 — Compare indicated vs filed

Surface the gap between the adequate rate and the rate in market.

Step 3 — Test against loss trend

Stress the rate for frequency/severity trend (§3 #3).

Step 4 — Decide deliberately

Recommend the rate action with the loss-ratio impact, as actuarial decision-support.

Output

An indicated rate, the indicated-vs-filed gap, a trend stress, and a deliberate rate recommendation.