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Rate making Rate making, or insurance pricing, is the determination of rates charged by insurance companies. The benefit of rate making is to ensure insurance companies are setting fair and adequate premiums given the competitive nature. ==Fundamental rate-making definitions==
The following are fundamental terms that are commonly used in rate making. A ''rate'' "is the price per unit of insurance for each exposure unit, which is the unit of measurement used in insurance pricing". The ''exposure unit'' is used to establish insurance premiums by examining parallel groups. The ''pure premium'' "refers to that portion of that rate needed to pay losses and loss-adjustment expenses". The ''loading'' "refers to the amount of the premium necessary to cover other expenses, particularly sales expenses, and to allow for a profit". The ''gross rate'' "is the pure premium and the loading per exposure unit". Finally, the ''gross premium'' is the premium paid by the insured consisting of the gross rate multiplied by the number of exposure units.
抄文引用元・出典: フリー百科事典『 ウィキペディア(Wikipedia)』 ■ウィキペディアで「Rate making」の詳細全文を読む
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