Moving Average Rating Method

Definition of "Moving average rating method"

JACK ehlert real estate agent
JACK ehlert, Real Estate Agent Keller Williams Realty Infinity

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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