Worthley Insurance Company's insurance rates are based on an expected loss ratio of 75 percent. Over the past three years, the actual loss ratio has been 70 percent. Application of the loss ratio method of ratemaking indicates that Worthley should: Increase its rates by approximately 5 percent Increase its rates by approximately 6.7 percent Reduce its rates by approximately 5 percent Reduce its rates by approximately 6.7 percent