Experience rating is a method used by insurers to determine pricing of premiums for different groups or individuals based on the group or individual's history of claims. The experience rating approach uses an individual's or group’s historic data as a proxy for future risk, and insurers adjust and set insurance premiums and plans accordingly.
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Famous quotes containing the word experience:
“The difference between tragedy and comedy is the difference between experience and intuition. In the experience we strive against every condition of our animal life: against death, against the frustration of ambition, against the instability of human love. In the intuition we trust the arduous eccentricities we’re born to, and see the oddness of a creature who has never got acclimatized to being created.”
—Christopher Fry (b. 1907)