Underwriting
Experience Rating
An underwriting method that adjusts an insured's premium based on their individual claims history relative to the expected claims for their risk class. A firm with fewer or smaller claims than average receives a premium credit, while a firm with worse-than-average claims experience faces a surcharge. The experience rating period typically covers the most recent five to seven years.
Related terms
Loss RatioThe ratio of claims paid (losses) to premiums earned, expressed as a percentage. A loss ratio of 60 ...UnderwritingThe process by which an insurance carrier evaluates the risk presented by a prospective insured and ...Risk Management CreditA premium discount offered by malpractice carriers to law firms that implement approved risk managem...Loss RatioThe ratio of claims paid and loss adjustment expenses to premiums earned, expressed as a percentage....