Configure Individual Risk Premium Modifications with Complete Governance
Not every commercial insurance risk fits a standard rating model. Underwriters frequently adjust premiums based on characteristics that are unique to an individual insured. These adjustments, commonly referred to as Individual Risk Premium Modifications (IRPM), allow insurance organizations to recognize favorable or unfavorable risk characteristics while maintaining consistent underwriting practices. SelectRate enables carriers, Managing General Agents (MGAs), wholesalers, and program administrators to configure, approve, test, audit, and deploy Individual Risk Premium Modifications through a centralized commercial insurance rating platform. Whether you apply simple underwriting credits or sophisticated schedule rating programs, SelectRate provides complete governance over every premium adjustment.
An Individual Risk Premium Modification (IRPM) is an underwriting adjustment applied to a commercial insurance premium after the base premium has been calculated. IRPM allows underwriters to recognize characteristics that are not fully reflected within bureau rating methodologies.
Adjustments may include:
Each adjustment becomes part of the final premium calculation.
No rating bureau can fully account for every unique commercial insurance risk.
Examples include:
IRPM gives underwriters controlled flexibility while maintaining pricing consistency.
SelectRate supports IRPM across virtually every commercial insurance product.
Each product can maintain independent IRPM rules.
Configure premium modifications without modifying application code.
Manage:
Business users maintain IRPM rules through configurable administration tools.
Schedule Rating is one of the most common uses of IRPM.
Evaluate:
Each factor contributes to an overall underwriting adjustment.
IRPM is automatically incorporated into premium calculations.
The rating engine evaluates:
Every premium calculation includes a complete breakdown of IRPM adjustments.
Many organizations require approval before premium modifications become effective.
Configure:
Approval workflows ensure underwriting consistency across the organization.
Every IRPM adjustment appears within the rating worksheet.
Review:
Complete transparency simplifies audits and internal reviews.
Every IRPM decision is permanently recorded.
Track:
Organizations maintain complete documentation for regulatory compliance.
Every IRPM rule should be validated before deployment.
Test:
Automated testing reduces production errors while improving pricing confidence.
Deploy IRPM changes through governed release workflows.
Supports:
Every underwriting adjustment follows a structured deployment process.
IRPM integrates directly into the underwriting workflow.
Evaluate:
Underwriters receive structured guidance while maintaining appropriate flexibility. Learn more about Underwriting Rules Engine
IRPM rules evolve over time.
Manage:
Organizations can introduce future underwriting strategies without affecting current business. Learn more about Effective Date Management
Applications automatically evaluate IRPM during every rating request.
Supports:
The API automatically incorporates approved IRPM adjustments into the final premium. Learn more about Insurance Rating API
Every premium modification is fully documented.
Track:
Organizations maintain complete governance over every underwriting decision.
Insurance organizations modernize IRPM administration to improve underwriting consistency and pricing flexibility.
Benefits include:
Give underwriters the flexibility to recognize unique risks while maintaining enterprise governance, complete transparency, and consistent commercial insurance pricing with SelectRate.