DEFINITION of 'Experience Rating Insurance' The amount of loss that an insured party experiences compared to the amount of loss that similar insureds experience. Experience rating is most commonly associated with workers' compensation insurance. It is used to calculate the experience modification factor. read more
Experience rating (insurance) is the amount of loss that an insured party experiences compared to the amount of loss that similar insureds experience. Experience rating is most commonly associated with workers’ compensation insurance. read more
Experience rating is a method of rating in which your premium is adjusted up or down to reflect your previous loss experience. It is based on the presumption that your historical loss experience predicts your future loss experience. read more
experience rating Definition A quantitative measure used by an insurance company to determine how much a given policy should cost, calculated using historical data to determine the risk of future claims. read more