Filing at a Glance General Information - Delaware Insurance ...

More documents

Recommendations

Info

ALLSTATE INDEMNITY COMPANY VOLUNTARY PRIVATE PASSENGER AUTOMOBILE DELAWARE FORMULA CALCULATIONS FOR RATE LEVEL INDICATIONS Attachment II Page 1 The data used in the calculation of the rate level indication was selected in accordance with the considerations listed in Section 3.2 of Actuarial Standard of Practice No. 23, Data Quality. The calculation of the rate level indication is consistent with the Statement of Principles Regarding Property and Casualty Insurance Ratemaking. A rate level indication is a test of the adequacy of expected revenues versus expected costs during the future policy period. Therefore, to derive the indicated rate level need accurately, Allstate's historical premium and loss experience needs to be adjusted. In accordance with Section 3.1 of Actuarial Standard of Practice No. 13, Trending Procedures in Property/Casualty Insurance Ratemaking, Allstate trends the underlying historical experience for premiums, losses, and fixed expenses to appropriately reflect historical and projected changes in these components of the rate level indications. In addition, historical premiums must be adjusted to reflect the current rate level; and historical losses must be adjusted to reflect expected development over time and to smooth the actual losses due to catastrophes. Details of these necessary adjustments to the historical data used in the rate level indication are described in this memorandum. The adjustments have been applied to Delaware’s premium and loss experience in deriving the indicated rate level changes by coverage. The table below summarizes the indicated rate change, and the actual rate level change being proposed. The determination of the overall indicated change is included in Attachment III, Exhibits 1.1-1.6, and described in detail throughout this filing. Coverage Indicated Rate Level Change Proposed Change Bodily Injury + 33.9% + 22.9% Property Damage + 108.8% + 29.8% Personal Injury Protection + 36.3% + 22.8% Uninsured/Underinsured Motorist - 53.7% 0.0% Collision - 12.7% - 5.0% Comprehensive - 67.3% - 20.0% TOTAL + 26.9% + 15.0%
BASE DATA Attachment II Page 2 In developing formula indications for Delaware, data from fiscal accident years ending December 31, 2008, 2009 and 2010 for all coverages was used. Each of these fiscal accident years is evaluated as of March 31, 2010. Consistent with past Allstate Indemnity Company filings, total limits data was used for all coverages. Accident Year Weights In order to develop a credible measure of the indicated rate level, it is sometimes necessary to use more than one year of historical loss experience. A maximum of three accident years is combined to determine the indicated provision for loss and loss adjustment expense for each coverage. The number of years used by coverage and the credibility per year is based upon a credibility procedure from the paper "On the Credibility of the Pure Premium" (Proceedings of the Casualty Actuarial Society, Vol. LV, 1968), by Mayerson, Jones and Bowers, and the appendix of the paper "Classical Partial Credibility with Application to Trend" (Proceedings of the Casualty Actuarial Society, Vol. LXXIII, 1986), by Venter. The analysis for each coverage was completed using a k value of 7.5% and a P value of 90.0%; these parameters reflect the desire that the observed pure premium should be within k% of the expected pure premium with probability P. In the present filing the following weights have been used: Accident Year Weights for Year Ending 09/30/2008 09/30/2009 09/30/2010 Bodily Injury 33% 33% 34% Property Damage 33% 33% 34% Personal Injury Protection 33% 33% 34% Uninsured/Underinsure 33% 33% 34% d Motorist Collision 33% 33% 34% Comprehensive 33% 33% 34% This approach for incorporating credibility in determination of the accident year weights is consistent with the Current Practices and Alternatives detailed in Section 3 of Actuarial Standard of Practice No. 25, Credibility Procedures Applicable to Accident and Health, Group Term Life, and Property/Casualty Coverages.
Page 1 and 2: SERFF Tracking Number: ALSE-1278234
Page 3 and 4: SERFF Tracking Number: ALSE-1278234
Page 5 and 6: DELAWARE VOLUNTARY PRIVATE PASSENGE
Page 13 and 14: COLLISION AND COMPREHENSIVE MODEL Y
Page 23: SERFF Tracking Number: ALSE-1278234
Page 26 and 27: ATTACHMENT I Summary of Disclosures
Page 28 and 29: ALLSTATE INDEMNITY COMPANY VOLUNTAR
Page 32 and 33: Loss Development ADJUSTMENTS TO LOS
Page 34 and 35: Attachment II Page 5 This approach
Page 36 and 37: period to derive the provision incl
Page 38 and 39: ADJUSTMENTS TO PREMIUMS Attachment
Page 40 and 41: Allstate Indemnity Company Private
Page 46 and 47: Fiscal Year Ending (1) Earned Expos
Page 52 and 53: Fiscal Accident Earned Year Ending
Page 58 and 59: Fiscal Accident Attachment III Exhi
Page 64 and 65: Allstate Indemnity Company Delaware
Page 66 and 67: Coverage Bodily Injury Property Dam
Page 74 and 75: Allstate Indemnity Year Ending Alls
Page 80 and 81:
Allstate Indemnity Allstate Indemni
Page 82 and 83:
Page 84 and 85:
Page 86 and 87:
Allstate Indemnity Company Private
Page 88 and 89:
ALLSTATE INSURANCE GROUP* Countrywi
Page 90 and 91:
Page 92 and 93:
Fiscal Year Ending (1) Earned Expos
Page 94 and 95:
Page 96 and 97:
Page 98 and 99:
Coverage Bodily Injury Property Dam
Page 100 and 101:
Attachment III Exhibit 17.2 Year En
Page 102 and 103:
Page 104 and 105:
Page 106 and 107:
Methodology ALLSTATE INDEMNITY COMP
Page 108 and 109:
Attachment IV Page 3 We have used t
Page 110 and 111:
ALLSTATE INDEMNITY COMPANY PRIVATE
Page 112 and 113:
Page 114 and 115:
Page 116 and 117:
Page 118 and 119:
Page 120 and 121:
Page 122 and 123:
Page 124 and 125:
ATTACHMENT V Summary of Manual Chan
Page 126 and 127:
Bulletin 23
Page 128 and 129:
4. Investment Income Bulletin 23 Pa
Page 130 and 131:
Bulletin 23 Page 4 Accident Paid Lo
Page 132 and 133:
Page 134 and 135:
Page 136 and 137:
Bulletin 23 Page 10 Accident Incurr
Page 138 and 139:
Page 140 and 141:
Page 142 and 143:
Bulletin 23 Page 16 Accident Year P
Page 144 and 145:
Page 146 and 147:
Page 148 and 149:
Bulletin 23 Page 22 Accident Paid L
Page 150 and 151:
Page 152 and 153:
Page 154 and 155:
Page 156 and 157:
Page 158 and 159:
Page 160 and 161:
Page 162 and 163:
Page 164 and 165:
Page 166 and 167:
Automobile Liability Insurance Othe
Page 168 and 169:
show all

Filing at a Glance General Information - Delaware Insurance ...

Create successful ePaper yourself

Delete template?

Save as template?