What is built-up rating developed for?

Built-up rating is specifically developed for a particular large commercial insured, taking into account their unique characteristics and underwriting factors. This method recognizes that large commercial accounts can have very distinct risk profiles that differ significantly from standard policies or smaller commercial operations.

In the context of large commercial insurance, built-up rating typically involves a detailed analysis of the insured's operations, loss history, liability exposure, and other factors that contribute significantly to the overall risk assessment. By conducting this thorough evaluation, insurers can establish a premium that accurately reflects the complexity and scale of the risk associated with that specific client, ensuring appropriate coverage for their needs.

This approach allows for more tailored insurance solutions, ensuring that large businesses, which often have unique operational risks, are not oversimplified into generic categories that do not accurately reflect their individual risk profiles.