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CHAPTER 13
THEORY AND PRACTICE OF PREMIUM RATING
Chapter Introduction
In this chapter you will learn the basics of underwriting and rate making. You
will learn about the different methods of dealing with hazards in the process of
rating of risks. You will learn how to decide the “Sum Insured” for various types
of insurance policies.
Learning Outcomes
A. Underwriting basics
B. Ratemaking basics
C. Rating factors
D. Sum insured
After studying this chapter, you should be able to:
1. Define the basics of underwriting
2. Explain the basics of ratemaking
3. Determine „Sum Insured‟ under various policies
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