Retrospectively Rated Policy Structure

Don’t know how the Risk will develop? Why not let the actual claims experience determine the ultimate premium?

• Insurer compensation is fixed over a wide range of claims results.
• Guaranteed maximum premium provides the administrator with catastrophic coverage if claims experience is worse than anticipated.
• Potential for Premium Dividend (return of premium) if better than forecasted loss history persists.

• Low limit exposures with large volumes of production with reasonably predictable claims patterns.
• Minimum $1,000,000 in annual premium.
• Large amount of historical data available to model expected loss costs.
• Minimum 1–2 business maturity cycles of experience.