White Paper

5 Pages
  • 5 Pages

An Overview of Retrospective Rating Programs

 

Gain an understanding of RRPs and the loss formulas.

Retrospective Rating Programs (RRP) is a type of insurance pricing tool used in workers’ compensation insurance to reward or penalize insureds based on loss ratio performance. The RRP is a loss sensitive pricing mechanism which means that the ultimate cost of coverage to the policyholder is a function of the losses that have occurred during the policy period. This white paper reviews RRPs and discusses several types of RRP loss formulas.