Skip to main content
A (16) | B (9) | C (29) | D (8) | E (12) | F (13) | G (8) | H (2) | I (11) | L (2) | P (2) | R (5) | X (1)
Termsort icon Definition Randy Comment
Policy Year Experience

The segregation of all premiums and losses attributable to policies having an inception or renewal date within a given twelve-month period. More specifically, the total value (losses paid plus loss reserves, including IBNR) of all losses arising from (regardless of when reported) policies incepting or renewing during the year is divided by the fully developed earned premium for those same policies. The finally developed earned premium will always equal the written premium for those policies. Policy-Year Experience resembles Accident Year Experience in that, while the experience is developing, loss reserves are used in the calculation, but the ultimate result cannot be finalized until all losses are settled. Policy-Year Experience is different in that premiums earned from policies incepting during a one-year period of time will earn over the course of both the year of inception and a later year(s). Similarly, losses to be included will be occurring over the same extended time period.  Also known as Underwriting Year. 

Profit Commission

See Contingent Commission