Work out experience rating factor instantly with clear inputs, formula shown and shareable results.
Experience rating rewards better-than-expected claims history. The modifier moves premium part of the way towards the actual-to-expected loss ratio, with credibility controlling how much of the difference is passed through.
Experience mod
Mod = 1 + Z × (Actual/Expected - 1); Premium = Manual × Mod
Yes. Losses below expected produce a credit modifier and a discount on manual premium.
One bad year is largely chance. Credibility damps the swing so pricing tracks genuine risk rather than luck.