Dean Analytic Schedule

Posted in Finance, Accounting and Economics Terms, Total Reads: 356
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Definition: Dean Analytic Schedule

Dean Analytic Schedule is a method to rate the fire insurance policies based on different fire hazards. The Dean Analytic Schedule evaluates and provides the insurance rates to the commercial fire insurance companies using a pre determined schedule. This schedule was originally presented by A.F.Dean in 1902. It was the first comprehensive qualitative analysis which took all the possible physical factors (which can impact a fire hazard) into consideration.


However, the Dean Analytic Schedule has become quite obsolete now and very few insurance companies use it now for rating their insurance policies. Due to the advent of new technology and the increasing reasons impacting fire exposure, most of the present fire insurance companies have now resorted to their self developed customized schedules to carry out the same functionality provided by the Dean Analytic Schedule. They also refer to the schedules provided by the Insurance Services Office. The main reason behind the obsolescence of the Dean Analytic Schedule is that it has become more than a century old, and the assumptions taken in the development if the schedule in 1902 by Dean might not apply to the current era, and thus this might induce an error while determining the insurance rates for the fire insurance policies. And since fire insurance policy is a sensitive issue, companies do not want to take a risk with the older system.

 

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