What Is Rate Adequacy?

A rate is "adequate" when premium collected is sufficient to cover expected losses, expenses, and a reasonable profit margin. Rate inadequacy is the single largest threat to insurance company solvency — charging too little accumulates silently until losses emerge years later.

Segment-Level Analysis

Building a Rate Adequacy Dashboard ` Here is our commercial property book performance data: - Premium, loss, and expense data by segment (region, class, size band) - 5 years of experience (2020-2024) - Loss development factors applied to bring all years to ultimate