Individual-retrospective rating plan

The individual-retrospective rating plan allows an employer to assume a portion of the risk in return for a possible reduction in premiums. The greater the assumed risk, the greater the potential reduction in premiums.

Employers who have a consistent claims history and proven safety practices will benefit the most from individual-retrospective rating. You can customize the plan to control the amount of risk you assume and the potential savings by selecting a maximum premium and maximum claims costs you are willing to pay. You may benefit from individual-retrospective rating because of lower initial premiums and realized cash flow advantages, which increase as premiums decrease.

The drawbacks of individual-retrospective rating may outweigh the advantages for some employers. For example, if you incurred high losses in a rating year, actual premiums could double.

Individual-retrospective rating plan details
Click here to learn more about the 10-Step Business Plan for Safety.