Coral Gables, October 11, 2019 – SL FINANCIAL is an actuarial consulting and advisory firm based in Miami, Florida. We offer complete actuarial solutions in both traditional (re)insurance and alternative risk financing industries.
Ratemaking is the process of establishing rates used in insurance or other risk transfer mechanism. The Statement of Principles Ratemaking sets out four principles for ratemaking:
The process is key to General Insurance (GI) or property and casualty (P/C) profitability and as such is covered in typical objectives of insurance regulation:
Rate regulation has a role in addressing all the objectives of insurance regulation and there is a wide range of rate regulation systems, which includes government-mandated rates at one extreme and open competition at the other (see illustration below):
Most rate regulation system allow private insurers to determine their own rates but require justification of these rates to the regulator, who must approve them, based on projections of claims and expenses. Insurers submit projections and forecasts (typically compiled in a rate filing) that are based on historical experience with adjustments, as required, for trend, development, product reforms, law change, etc.
Over the past three years, SL FINANCIAL managed to increase presence in Florida, assisting small and medium size private insurers along with regulator in areas of rate filing, actuarial reserve certification, reinsurance pricing and catastrophe modeling. So, what makes a good Florida Homeowners rate filing?
SL FINANCIAL developed a unique methodology that aims at simplifying the rate filing process for both the insurer and the regulator i.e. the Florida Office of Insurance Regulation (FLOIR). In particular that process include our Florida Rate Filing Document Mapping tool, that ensure the following part of the filing are submitted appropriately: