Retrospective rating

Retrospective rating,

Definition of Retrospective rating:

  1. A type of plan sometimes used when the insured is a large entity. Under this type of plan, the final premium of a policy is not calculated until close to the end of the coverage period. The final premium is calculated, within a certain maximum and minimum, based on the insureds actual loss experience for the period that just passed.

Meaning of Retrospective rating & Retrospective rating Definition