Rate book matching process

Rating Management looks for rate routines and rate tables in:

  • The most appropriate rate book only if cascaded lookup is disabled in the most appropriate rate book.
  • Cascaded rate books if cascaded lookup is enabled in the most appropriate rate book.

The rate book matching process differs between selecting the most appropriate rate book and selecting the cascaded rate books.

In either case, however, the query uses certain required attributes when selecting candidate rate books. The following required attributes must match for a rate book edition to be a candidate:

  • Effective/Expiration Dates – The coverage Reference Date must be later than or equal to the rate book’s effective date (On or After) and earlier than the expiration date (Before). For more information about the coverage reference date, see Setting the reference date.
  • Activation Date – The rate book Activation Date must be earlier than the policy Rate as of Date. The rate as of date controls which version of a rate book to use if there are rate book editions with overlapping effective dates.
  • Status – The rate book Status is equal to or higher than the Minimum Rating Level. The status is a configuration parameter. See Minimum rating level parameter.

The candidate rate books are further filtered to find matches. Different filtering algorithms are used for selecting the most appropriate rate book and cascaded rate books.

When selecting rate books, rate book matching uses the following algorithm:

  1. The query retrieves a list of candidate rate books that match required attributes, as described above.
  2. The query further filters down the list based on the values of the optional attributes: policy line, jurisdiction, underwriting company, and offering. The query uses one filtering algorithm to find the most appropriate rate book. The query uses another filtering algorithm to find the cascaded rate books.
  3. If a single matching rate book is found, the query returns it.
  4. If multiple matching rate books are found, the query returns the rate book with the latest activation date that is earlier than the rate as of date. For example, the query can find multiple matches when there is more than one edition of a rate book.