NCRB

An organization that collects loss statistics and develops advisory insurance rates for its member companies. North Carolina Rate Bureau (NCRB) is a prominent example, providing rating services for auto, property, and workers compensation insurance. Some states use rate bureaus while others allow insurers to file their own rates.

A group supported by member insurance companies whose function is to gather loss statistics, develop loss costs and rating information, and make this data available to members. Advisory organizations also file rates on behalf of smaller insurance companies and develop standardized policy forms. Examples include the Insurance Services Office (ISO) and the National Council on Compensation Insurance (NCCI). These organizations provide actuarial services, research, and statistical analysis that help insurers price policies accurately and comply with regulatory requirements. Unlike rating bureaus of the past, modern advisory organizations provide information and recommendations but do not set mandatory rates; each insurer makes independent pricing decisions based on the advisory data.

Insurance coverage required by law that provides wage replacement and medical benefits to employees injured in the course of employment, in exchange for mandatory relinquishment of the employee's right to sue the employer for negligence.

A business professional who analyzes probabilities of risk and risk management, including calculation of premiums, dividends, and other applicable insurance industry standards.

The process by which an insurer evaluates the risk of insuring a person or property and determines coverage terms and premium rates.

The ratio of losses paid plus loss reserves to premiums earned, used by insurers to measure underwriting profitability and pricing adequacy.

The sum of the loss ratio and expense ratio, measuring an insurer's overall underwriting profitability. A ratio below 100% indicates underwriting profit.