Exposure Rating

Definition

Exposure Rating is a procedure used by reinsurers to calculate risk exposure in a reinsurance treaty. In this calculation, the reinsurer does not need previous exposure to underwriting the specific risk. The exposure rating method is one of two risk calculations used in the insurance industry. The second method is called the experience rating method.

Improve this page

Please let us know if you see an error or omission on this page.

Provide Feedback