An organization that gathers statistics, computes rates, develops form documents and provides services for Property & Casualty insurers affiliated with it.
See NCCI. Some states (i.e. California, Delaware, Hawaii, Indiana, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Carolina, Pennsylvania, Texas, and Wyoming) maintain their own separate rating bureau, although these states often follow NCCI rules and use NCCI manuals.
An association of insurers which: makes rates for the use of its affiliated insurers; devises territorial classifications, rating plans, schedules, manuals, policy forms and building inspections; and performs related functions for companies.
An organization that gathers statistics, makes rates and/or creates policy forms and provides other services for the property and casualty insurers affiliated with the bureau.
See NCCI or WCIRB in California. Some states maintain their own separate rating bureau, although these often follow NCCI rules and use NCCI manuals. Currently, the states of California, Delaware, Hawaii, Indiana, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Carolina, Pennsylvania, Texas, and Wyoming operate their own non-NCCI rating bureaus. Many of these largely follow NCCI rules for computing premiums and classifications, but California, Delaware, Texas, and Pennsylvania are notably different than NCCI in some aspects of classification and premium computation.
An organization that classifies and promulgates and in some cases compiles data and measures hazards of individual risks in terms of rates in a given territory.
A state supervised organization that classifies and computes rates, gathers data, and measures individual risk hazards. This information is made available to all insurance companies who are members of such a bureau.
An organisation that collects statistics of losses and suggests to insurers what rates of premium appear to be indicated by the available facts (U.S.).
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 defense costs.
A private organization that classifies and promulgates manual rates and in some cases compiles data and measures the hazards of individual risks in terms of rates in geographic areas, the latter being true especially in connection with Property Insurance.
See Insurance Services Office (ISO).
A private organization that classifies and promulgates manual rates (or loss costs).