Claims-made multiplier

{
  "id": "MLC-T-INS-000768",
  "term": "Claims-made multiplier",
  "field": "Insurance and risk management",
  "definition": "A set of factors, usually applied to the mature claims-made rate or to an equivalent occurrence rate, that set the premium for each year of a claims-made policy. The first-year factor is low because few claims from prior acts can yet be reported, and the factors rise each year toward 1.0 as the retroactive date recedes. ISO claims-made multipliers reach maturity after about five years.",
  "subject": "Commercial Liability",
  "url": "https://mlchart.com/terminology/insurance/claims-made-multiplier/"
}