CAS Exam 8: Advanced Ratemaking

Classification Ratemaking

Exam 8 covers advanced techniques for developing classification rate plans. Topics include generalized linear models applied to insurance pricing, minimum bias procedures, and credibility-weighted class plan relativities. You must understand how to balance actuarial accuracy, regulatory requirements, and market considerations when developing rate structures. Multivariate analysis methods for handling correlated rating variables are a significant focus.

Excess and Reinsurance Pricing

The excess and reinsurance pricing section covers increased limits factors, loss layering analysis, and reinsurance pricing methodologies. Topics include experience rating for excess layers, exposure rating, and the interaction between primary and excess loss distributions. This exam requires integration of concepts from earlier CAS exams with advanced statistical methods. The written-answer format demands clear explanation of methodology choices. Preparation should include practicing written responses that demonstrate both technical competence and professional communication skills.