Abstract
This chapter begins by considering how a fair system of rate regulation—fair to both policyholders and insurance-company stockholders—would work. This question is usually answered by defining a fair rate of return. However, fairness can be more clearly and generally defined in terms of present value.
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© 1987 Springer Science+Business Media New York
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Myers, S.C., Cohn, R.A. (1987). A Discounted Cash Flow Approach to Property-Liability Insurance Rate Regulation. In: Cummins, J.D., Harrington, S.E. (eds) Fair Rate of Return in Property-Liability Insurance. Huebner International Series on Risk, Insurance and Economic Security, vol 6. Springer, Dordrecht. https://doi.org/10.1007/978-94-015-7753-3_3
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DOI: https://doi.org/10.1007/978-94-015-7753-3_3
Publisher Name: Springer, Dordrecht
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