Insurance rate-making is both a science and an art, and it's becoming more complicated. Now General Management Systems Inc. is trying to make it easier by means of eRateMaker®, a computer model that can benefit both insurance executives and regulators. The model's analytic automation is the first in a line of tools for all personal lines of insurance and some commercial lines. The model allows regulators to capture a carrier's underwriting experience and risk classes, processes such data in preapproved algorithms, and contains tools for sensitivity ("what-if") analyses that allow regulators and executives to test the impact that rate-making assumptions have on indicated rate levels.
