Manual rating

Manual rating is pricing an insurance policy by applying the insurer’s filed rate manual, including its base rates, rating factors and rules. It contrasts with experience rating and with a premium set individually by an underwriter.

Example

Suppose two drivers share a territory and class but have different past losses. The manual gives them the same premium, while experience rating adjusts a large account’s premium for its own losses.

Decisimo’s insurance decision-engine article shows a demo home premium calculated from a base rate, rating factors, discounts, a fee and a minimum-premium check.