The insurance business is based on the spread of risk. The more widely risk is spread, the more accurately loss can be estimated. An insurance company can more accurately estimate the probability of loss on 100,000 homes than on ten. Years ago, insurers were required to use standardized forms and rates developed by rating agencies. Today, large insurers use their own statistical loss data to develop rates. But small insurers, or insurers focusing on special lines of business, with insufficiently broad loss data to make them actuarially reliable depend on pooled industry data collected by such organizations as the Insurance Services Office (ISO) which provides information to help develop rates such as estimates of future losses and loss adjustment expenses like legal defence costs. |
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Rate Regulation
Rated Policy Rate Rating Agencies Rating Bureau Real Estate Investments Receivables Reciprocal Exchange Redlining Reduced Paid-up Insurance Option Registered Principal Registered Representative Reinstatement Reinsurance Relation Of Earnings To Insurance Clause Renewable Term Insurance Policy Renters Insurance Replacement Cost Repurchase Agreement (REPO) Reserves Residual Disability Insurance Residual Disability Residual Market Retention Retrocession Retrospective Rating Return On Equity Rider Risk Management Risk Retention Groups Risk-based Capital Risk Rollover.
