How Insurance Premiums are Determined

by Chelsea Rosine | Nov 21, 2019

New Home and Auto Insurance Courses From WebCE

How to determine insurance premiums

Insurance pricing is based on the fundamental premise that everyone should pay his or her fair share of the insurance company's costs of providing insurance to hundreds of thousands of insurance buyers. But how should that fair share be determined? As an insurance agent, you want to know what factors impact premiums to help your clients the best you can. WebCE created two new courses to give insight into what factors into premium pricing on both home and auto insurance.

Homeowners Insurance: Factors Impacting Premiums

Understanding how homeowners insurance premiums are calculated can be difficult. The answer is complicated by the fact that nobody knows for sure what losses if any, a homeowner will have until after his or her policy is issued and paid for. By learning about the factors insurers commonly consider when pricing homeowners insurance, whether for an individual or a family, you can walk them through the process and answer questions they may have.

The course Homeowners Insurance: Factors Impacting Premiums will allow you to identify reasons for the use of class rating in pricing homeowners insurance and the rationale behind each deciding factor that goes into determining a premium. You’ll also be able to recognize the issues and arguments surrounding the use of credit-based insurance scores and CLUE reports. By recognizing emerging innovative approaches to pricing homeowners insurance, you can position yourself as an expert in your industry.

Personal Auto Insurance: How Premiums are Determined

Insurance pricing is based on numerous factors, and insurers use a variety or rating principles. While this can create healthy competition, it also results in very different premiums for the same coverage. Learning about the rating factors and the reasoning behind each factor can allow you to help clients find the best coverage and price point for their needs.

By the end of the course Personal Auto Insurance: How Premiums are Determined you’ll be able to identify reasons for the use class rating in pricing personal auto insurance. You’ll also be able to recognize the factors affecting the type an number of rating classifications an insurer might use. 

Understanding premiums can allow you to better answer client questions and expand your career. To learn more about these courses and more, visit www.webce.com or call us at 877.488.9308.

Insurance Continuing Education  Insurance Exam Prep