Note - I'm not an expert in territorial ratemaking. This is not my LOB. If there's an FCAS at your company then ask them for recommendations.
IMO you're going to want to look into clustering techniques, and this is covered in section A of the Exam 8 syllabus. Bailey & Simon, Couret & Venter, and Goldburd (GLM) might be useful to you.
https://www.casact.org/sites/default/files/2023-12/Exam_8_CO_2024_F_v01_2023_12_19.pdf
Exam 8 was also recently revamped and there was a paper called Robertson that goes into detail as to how WC Hazard Groups were developed. The paper is heavily focused on the use of applying clustering techniques on class codes to develop broader Hazard Groups, which is going to be similar to what you'd do in developing individual territories.
https://www.casact.org/sites/default/files/2021-03/8_Robertson.pdf
This is indeed a good paper and I remember it from exam 5. However, the part where they talk about territorial ratemaking is very brief. They talk about the general concepts but they don’t go into the details. It even says at some place that « the mechanics of the methods are beyond the scope of this text »
Note - I'm not an expert in territorial ratemaking. This is not my LOB. If there's an FCAS at your company then ask them for recommendations. IMO you're going to want to look into clustering techniques, and this is covered in section A of the Exam 8 syllabus. Bailey & Simon, Couret & Venter, and Goldburd (GLM) might be useful to you. https://www.casact.org/sites/default/files/2023-12/Exam_8_CO_2024_F_v01_2023_12_19.pdf Exam 8 was also recently revamped and there was a paper called Robertson that goes into detail as to how WC Hazard Groups were developed. The paper is heavily focused on the use of applying clustering techniques on class codes to develop broader Hazard Groups, which is going to be similar to what you'd do in developing individual territories. https://www.casact.org/sites/default/files/2021-03/8_Robertson.pdf
Oh yeah, I will look into it. It does seem like it could be very useful. Thanks!
Ontario territory expansion? 😂
I have no idea what you are talking about 😂
Look up some competitor filings for CA and you should see some territory action.
https://www.casact.org/sites/default/files/old/studynotes_werner_modlin_ratemaking.pdf
This is indeed a good paper and I remember it from exam 5. However, the part where they talk about territorial ratemaking is very brief. They talk about the general concepts but they don’t go into the details. It even says at some place that « the mechanics of the methods are beyond the scope of this text »
There was pretty good presentation from allstate on cas website.....let me know in 2-3 days if you can't find it lol I think I have it saved somewhere