Moving Average Rating Method


Definition of "Moving average rating method"

Pamela D. Kuster real estate agent
Pamela D. Kuster Keller Williams Realty

Procedure, in insurance, used in time series analysis to smooth out irregularities in projections of loss expectations. Irregularities to be smoothed out include: loss experience that is not homogeneous, loss experience from early policy years not representative of current loss experience, adverse selection by policyholders, changes in loss experience due to changing social values, and loss experience distortion due to misleading averages.

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