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Old 12-03-2018, 05:14 PM
kushy04 kushy04 is offline
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Default Quick question regarding SERFF

Hi,

I'm a fairly new actuarial analyst, been working a little over a year for a consulting firm. I've been using SERFF daily since I've started my work with this firm. When using SERFF, under the Rate/Rule schedule of the filing, there is a table with the following columns:
----------------------------------------------
Company Name:
Overall % Indicated Change:
Overall % Rate Impact:
Written Premium Change for this Program:
Number of Policy Holders Affected for this Program:
Written Premium for this Program:
Maximum % Change (where required):
Minimum % Change (where required):
----------------------------------------------

My question is this and I'm expecting a simple fairly easy to explain answer (because this is an overly simple question)... What is different about "Overall % Rate Impact" and "Overall % Indicated Change"? If these are not the same thing, how do they differ in definition?


Thank you in advance.
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Old 12-03-2018, 05:25 PM
act_123 act_123 is offline
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Rate indication - is the rate your actuarial analysis indicates.

Rate impact - is the rate the company is asking the department to approve.

Indication +35%, Impact +20%. That means the company is asking for a 20% rate increase if price was 100, now it is a 120. Their actuarial support shows they should charge 135...
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Old 12-03-2018, 05:41 PM
kushy04 kushy04 is offline
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Default

Quote:
Originally Posted by act_123 View Post
Rate indication - is the rate your actuarial analysis indicates.

Rate impact - is the rate the company is asking the department to approve.

Indication +35%, Impact +20%. That means the company is asking for a 20% rate increase if price was 100, now it is a 120. Their actuarial support shows they should charge 135...
Thank you thank you thank you thank you thank you thank you...
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Old 12-03-2018, 07:52 PM
IANAE IANAE is offline
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From a googled SERFF training document:

Quote:
Company Rate Information –
o Overall % Indicated Change - This field is only to be completed when an actuarial indication is included in the filing submission.

o Overall % Rate Impact – This is the statewide average percentage change to the accepted rates for the coverage’s included for each company.
I suggest checking for instructions from the Insurance Department as they may have specified the required calculations.
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