A rate analyst studies and evaluates rates in various industries, proposing changes or restructuring. Their job requires research, communication, and mathematical skills, and they typically oversee an accounting team. A bachelor’s degree and experience in budgeting or accounting are required.
A rate analyst studies and evaluates existing rates in any number of industries. Based on its conclusions, it will propose changes or suggest a restructuring of the way they are calculated or charged. The position usually exists in insurance companies and utility companies, such as energy providers, or utility regulatory agencies, such as those that govern freight carriers. Regardless of where she works, her findings and recommendations are usually reviewed by a panel or board before being implemented.
Rate analysis is necessary for several reasons. Rates may need to be adjusted based on increases or decreases in services. If new taxes are imposed, restructuring fees to reflect the increase are usually required. Reduced overhead costs may incur rate reductions. If new competition enters the market, rates may be reviewed to determine how competitive they are.
A rate analyst’s job involves making predictions and projecting circumstances that may positively or adversely affect future rates. This requires studying the consequences of government actions and legislative decisions. Reviewing similar cases and their results helps the analyst arrive at rational conclusions on which his recommendations are based.
A position as a rate analyst requires top-notch research skills. Proposed rate changes require well-documented facts to justify the changes. As these rate change proposals are reviewed by industry professionals and non-professionals, the rate analyst is expected to produce reports and summaries that can be easily understood and are free of industry jargon or confusing language.
Excellent communication skills are highly desirable for a rate analyst. She should talk to politicians, suppliers, customers and regulatory agencies to determine their main concerns. How she addresses these issues and recommends revisions, negotiations and concessions are a big part of the discussions. Discerning personal desires from requests made in the public interest is important for the rate analyst to make sound recommendations.
Advanced mathematical acumen in areas such as cost accounting and statistical analysis helps a person in this position understand how fees affect cash flow and revenues. A rate analyst typically oversees an accounting team who provide facts pertinent to their research. A good understanding of the policies and procedures that govern fee adjustments is helpful in efficiently performing your job.
For a rate analyst position, companies typically require a bachelor’s degree in business administration, economics, public policy, or accounting. Generally, a minimum of three years of experience in the areas of budgeting or accounting is required, including at least one year in auditing, fee analysis or fee regulation. Experience in related fields involving regulatory agencies or statistical analysis or similar educational background is sometimes acceptable in lieu of other preferred requirements.
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