What does PBR mean in STOCK EXCHANGE

Performance Based Ratemaking (PBR) is a system of ratemaking used in the insurance industry to calculate premium rates. It combines traditional rating factors with the experience of a given insurer to set premiums more accurately than traditional ratemaking.

PBR uses actuarial analysis to assess the current claims experience, expenses and other financial data for an insurer. The analysis then determines the most effective way for that insurer to balance the cost burden between policyholders and shareholders.

Factors used in PBR include historical claims data, predictive analytics, risk management strategies, and cost drivers such as inflation and market conditions.

Insurance companies use PBR when setting their premiums in order to ensure accuracy and fairness across policyholders. Regulators also use it when determining whether or not insurers are setting appropriate rates for their customers.

Yes, there are several benefits associated with using PBR compared to traditional ratemaking methods including improved pricing accuracy and affordability, better alignment between insurance costs and risk exposures, reduced administrative costs, increased transparency and improved customer service levels.