Composite rating

{
  "id": "MLC-T-INS-000872",
  "term": "Composite rating",
  "field": "Insurance and risk management",
  "definition": "A method of calculating insurance premiums where a single rate is applied to an entire group of exposures, rather than rating each individual exposure separately. This approach simplifies the underwriting process for homogeneous groups, such as employees in a company health plan or vehicles in a commercial fleet. The composite rate is derived from the overall loss experience and characteristics of the entire group.",
  "url": "https://mlchart.com/terminology/insurance/composite-rating/"
}