A rate analyst researches and assesses current rates in a variety of industries. She will propose changes or suggest restructuring the way they are calculated or charged based on her findings. This position is frequently found in insurance companies and utility companies, such as energy providers, as well as utility regulatory agencies, such as those that regulate freight carriers. Her findings and recommendations are typically reviewed by a panel or board before being implemented, regardless of where she works.
For a variety of reasons, rate analysis is required. Based on an increase or decrease in services, rates may need to be adjusted. When new taxes are imposed, it is frequently necessary to restructure rates to reflect the increase. Rates may be reduced as a result of lower overhead costs. Rates may be reviewed to see how competitive they are if new competition enters the market.
A rate analyst’s job entails forecasting and projecting events that may have a positive or negative impact on future rates. This necessitates a thorough examination of the effects of government actions and legislative decisions. Analyzing similar cases and their outcomes aids the analyst in arriving at rational conclusions on which to base her recommendations.
A job as a rate analyst necessitates excellent research abilities. To justify proposed rate changes, well-documented facts are required. The rate analyst is expected to prepare reports and summaries that are easy to understand and free of industry jargon or confusing language, because these rate change proposals are reviewed by both industry professionals and non-professionals.
For a rate analyst, excellent communication skills are essential. She’ll need to talk to politicians, service providers, customers, and regulatory agencies to figure out what their main concerns are. Negotiations and concessions are a big part of the conversation as she addresses these issues and makes recommendations for changes. It is critical for the rate analyst to distinguish personal desires from requests made in the public interest in order to make sound recommendations.
A person in this position needs advanced math skills in areas like cost accounting and statistical analysis to understand how rates affect cash flow and revenues. A rate analyst is usually in charge of an accounting team that provides her with data for her research. A thorough understanding of the policies and procedures governing rate adjustments will aid her in performing her duties effectively.
Companies typically require a bachelor’s degree in business administration, economics, public policy, or accounting for a position as a rate analyst. Typically, a minimum of three years of experience in budgeting or accounting is required, with at least one year of experience in auditing, rate analysis, or rate regulation. In some cases, experience in related fields involving regulatory agencies or statistical analysis, as well as a similar educational background, can be substituted for the other preferred requirements.