This session will deal with exposure bases which are an important part of actuarial ratemaking work and have not always been focused on at CAS seminars. We will provide a brief history of exposure bases, how they have evolved, and discuss what makes a good exposure base today. Following that, we will discuss some of the applications of exposure bases. We will also discuss modern challenges and opportunities with exposure bases including the impact of technological improvements and the Covid-19 environment
This will be an interactive session with polling questions regarding some of the key issues we will be discussing. Additionally, there will be opportunities for audience members to share their thoughts on these issues.
Learning Objectives:
Discuss why exposure bases are important and what makes a good exposure base.
Compare the benefits/drawbacks of the use of inflation sensitive exposure bases (sales, payroll) versus purely activity-based exposure bases (gallons, admissions, store visitors).
Discuss the modern challenges and opportunities with respect to exposure bases.
