Zone rating

{
  "id": "MLC-T-INS-003578",
  "term": "Zone rating",
  "field": "Insurance and risk management",
  "definition": "A method of classifying risks and determining insurance premiums based on the geographical area where the insured property or risk is located. Insurers divide regions into zones, assigning different rates to each zone according to its perceived risk level, such as susceptibility to natural disasters or crime rates. This approach is commonly used in property insurance, flood insurance, and auto insurance.",
  "url": "https://mlchart.com/terminology/insurance/zone-rating/"
}