Rating methodology

{
  "id": "MLC-T-INS-002803",
  "term": "Rating methodology",
  "field": "Insurance and risk management",
  "definition": "The systematic approach and set of procedures used by an insurer to determine the appropriate premium for an insurance policy. This involves the selection of risk factors, the statistical analysis of historical data, and the application of actuarial principles to project future losses and expenses. Common methodologies include experience rating, schedule rating, and retrospective rating, each tailored to different types of risks.",
  "url": "https://mlchart.com/terminology/insurance/rating-methodology/"
}