For some types of insurance (insurance of passengers from accidents, vehicles, animals, and a few others) wage rates may be established with the object of insurance.
In particular, the insurance rate is determined by the passengers with a passenger, vehicle insurance rates can be set based on the brand of vehicle insurance animal - a species of insured animals. Moreover, if only one object is insured, the insurance premium equal to the tariff rate, and when there are many objects, the insurance premium is determined by multiplying the base rate by the number of objects.
Thus, the wage rate is the basis for determining the share of each policyholder participation in the formation of a monetary fund. At the expense of the fund should be made insurance payments covered other expenses of the insurer and make a profit. Therefore the main task, which is placed in the calculation of the tariff rate is associated with a certain probability the payments for insurance claims and other expenses of the insurer, per unit of sum insured or one object of insurance.
If wage rates are calculated correctly, the insurer by premiums received can fully perform its obligations, to cover their costs for the insurance and profit. Overestimation rates compared to the probability of the risks is not conducive to insurance contracts with potential policyholders, reduces competitive ability of the insurer in the insurance market.
Understatement of the tariff rate can lead to the fact that the insurer will not have enough funds for insurance payments, and as a result suffered by the insured or other participants in the insurance expense will not be reimbursed. The latter situation is extremely negative impact not only on the financial position of the insurer, but also causes a lack of confidence on the part of insurance policyholders. Therefore, the supervisory authority in Russia establishes control over the rationale for the wage rate, and can be severe penalties for the decrease in the value rates insurers without sufficient grounds.
Tariff rate at which the policyholder pays the insurance premium, called the gross rate. It consists of two parts: the net rate and load.
Net rate is designed to form an insurance fund, which is used for the insurance payment (insurance coverage - in personal insurance and indemnity - in property insurance), that is, to meet the financial obligations of the insurer under insurance contracts. The load is designed to compensate for the cost of the insurer: Maturity overhead, forming spare, reserve and other funds. In the load includes certain planned profit from insurance operations.
Net rate in personal and property insurance has a different structure, which is caused by types of insurance and their purpose. Thus, the net rate of personal insurance consists of risk premium (accident, illness, death) and storage (savings) contributions, that is, the net rate reflects each type of insurance liability assumed by the insurer. Therefore, if the conditions of insurance industry or sub-sector includes several types of insurance liability (mixed life insurance, financial risk, and so on), the combined net rate may consist of several private net rates.
The value of private net rate is calculated in direct proportion to the risk. However, since the premium is the average data size of insurance payments, there may be significant deviations from the average.
To compensate for possible price deviations for individual insurance premiums is risky (estimated) warranty allowance, which is called the Delta surcharge.
In calculating the gross rate is initially in net interest (definition of net rate is considered in the next section), it is added to the load, and obtained final bid. Usually the load is the percentage of the gross rate, and therefore the latter is determined by the following formula:
where ^ BS - gross rate;
NA - net rate;
n - the load percentage.
The size of the net rate is affected by two factors:
the probability of occurrence of the insured event under the contract;
the expected severity of the insured event, which is defined as the ratio of the expected value of the payment for an occurrence of the sum insured under this contract.
Compulsory insurance rates are set by law or other regulations. Voluntary insurance rates are calculated by insurers themselves. Calculation of rates with the application of the methodology used for their identification and indication of the source input data is represented in the supervisory authority for approval. At the same time there is the structure of the tariff rate with the proportion of net rate and load. After receiving permission, the insurance organization has the right to apply the calculated rates. As for the specific insurance contract, the insurance rate is determined by agreement of the parties, taking into account many factors that characterize the object of insurance.
When compulsory insurance because of its comprehensive nature of possible economic redistribution insurance for farmers working in particularly unfavorable natural and economic conditions facing difficulties in implementing the expanded reproduction.
Voluntary insurance due to its selective ™ calls for differentiation of the tariff rate. The basis should be made the difference in not only the largest net rate, but also allowances. Differentiation is made by subsector and insurance, territorial and other features.
* Load (surcharge) is generally the insurance rates are much smaller portion of the gross rate (depending on the shape and type of insurance, it varies from 9% to 40%).
The main advantage of the considered structure (model) of the insurance rate is a clear division of the insured and the insurer. It should be noted that although the structure of the insurance rate law "On insurance" is not regulated, however, taxation is conducted on this model. She applied for licensing of insurance companies.
Identify (estimate) of the insurance rate is by using the theory of actuarial calculations (a combination of mathematical methods used in statistics, probability theory and financial terms, taking into account the social, demographic, and other factors.)
^ The economic content of the insurance rate can be defined as a measure of mutual obligations of the insurer and the insured (the equivalence principle).
The basis for dividing the gross rate on a net rate and the load is the thesis that the net rate is intended to cover the obligations of the insurer to the insured, and the load - on the funding of the insurance company.