What does Retrospective Rating mean? Read on to discover the definition & meaning of the term Retrospective Rating - to help you better understand the language used in insurance policies.
A rating plan that adjusts the premium, subject to a certain minimum and maximum, to reflect the current loss experience of the insured. Retrospective rating combines actual losses with graded expenses to produce a premium that more accurately reflects the current experience of the insured. Adjustments are performed periodically, after the policy has expired.
We hope the you have a better understanding of the meaning of Retrospective Rating.