Fall 2019 Q15c)
Hi, would composite rating be an answer that could be an answer for part C? Also, when they ask for something that would benefit "the company", I guess it is implied that it's asking for something that would benefit the insurer, correct?
Comments
Although it definitely wouldn't be my first choice, I suppose you could think about using a composite rating approach for a diverse workforce under a workers' compensation (WC) policy, but it's a bit out of the ordinary and might not capture the risk assessment as precisely as you'd want for WC insurance. It could make things easier to manage, but the trade-off might be less accurate risk pricing.
Unless there is further information given in the problem to nudge you to considering composite rating, I would probably go with one of the other given answers.