Premium Level Changes

Premium Level vs. Rate Level

Premium level change amount can be different from the rate level change amount.

The rate level change is the change arising from an actual adjustment to the manual rates. A premium level change is the additional premium generated through a number of different ways, such as a change in the premium discount table or expense constant. Neither of these affect the manual rates, but they will affect the amount of premium paid by policyholders in a state.

Of course changing manual rates will result in both a rate level change and a premium level change.

Notes:
Totals calculated in multiplicative manner
Premium level changes analysis:
1990's: 1.233 x 1.049 x 1.134 x 1.078 x 1.028 x 0.966 x 0.941 x 0.908 x 1.056 x 0.958 x 0.975 x 1.027 = 1.359
2000's: 1.001 x 1.036 x 1.015 x 0.926 x 0.981 x 0.982 x 1.032 x 1.022 x 0.969 x 1.004 x 0.966 = 0.931