[[Actuarial Notes Wiki|Wiki]] / [[Exam 5 (CAS)]] / **Rate Level Change** ## Definition ==Rate Level Change== is the impact of historical rate modifications on loss costs and premium, requiring adjustment in reserving to ensure proper relationship between losses and exposures. ## Impact on Reserving ``` Rate changes affect: - Reported loss amounts (limits may change) - Mix of business (price sensitivity) - Loss costs (anti-selection) ``` ## Adjustments Needed - On-level historical premium - Adjust for exposure shifts - Consider anti-selection effects - Normalize for trending ## Related Concepts - [[On-Level Premium#Definition]] - [[Rate Change#Definition]] ## References - Friedland, Chapter 2