Back rate making The calculation of premium rates for an insurance company's products.
Actuaries consider several factors when they establish life insurance premium rates.
The most important factors are mortality rates, interest rates, and loading. A method of comparing the costs of life insurance policies wherein the key figure calculated is an annual interest rate, representing a rate of return. Also called the Linton yield method. See also cost comparison methods. The three different approaches that insurers take when they use mortality assumptions to calculate group life insurance premiums.