( Insurance : Underwriting )
With experience rating, the insurer evaluates the claims history of a particular group in order to set a
premium for the next period.
The company uses experience rating to review the previous year's claims experience for a group insurance contract in
order to establish premiums for the future contract.
Experience rating is a method of adjusting the premium for a risk based on past loss experience for
that risk compared to loss experience for an average risk.
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