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Judgment Rates

Give Underwriters Pricing Flexibility with Complete Governance

Commercial insurance underwriting is not always formula driven. Some risks require experienced underwriters to apply professional judgment when standard rating methodologies do not accurately reflect the exposure. SelectRate enables insurance organizations to manage Judgment Rates through configurable workflows that combine underwriting expertise with enterprise governance, approval controls, audit history, and premium transparency. Rather than allowing uncontrolled premium overrides, SelectRate provides a structured framework that documents every judgment based pricing decision throughout the product lifecycle.

What Are Judgment Rates?

Judgment Rates allow an underwriter to establish a premium using professional underwriting expertise rather than relying exclusively on standard bureau rates or predefined rating formulas.

Judgment Rates are commonly used when:

Every Judgment Rate becomes part of the permanent underwriting record.

Why Judgment Rates Matter

Commercial insurance frequently involves risks that fall outside standard rating methodologies.

Examples include:

Judgment Rates allow underwriters to apply experience while maintaining pricing consistency and regulatory compliance.

Built for Commercial Insurance

Judgment Rates can be configured for virtually every commercial insurance product.

General Liability
Workers Compensation
Commercial Property
Commercial Auto
Inland Marine
Builders Risk
Cyber Liability
Professional Liability
Umbrella
Excess Liability

Each product can define independent Judgment Rate policies.

Underwriter Workspace

Judgment Rates are managed directly within the Rating Workbench.

Underwriters can:

  • Review Premium
  • Analyze Risk
  • Compare Bureau Pricing
  • Enter Judgment Premium
  • Document Reasoning
  • Submit for Approval

Every decision becomes part of the underwriting workflow.

Premium Calculation Integration

Judgment Rates integrate directly into the premium calculation engine.

Review:

  • Bureau Premium
  • Carrier Pricing
  • Judgment Premium
  • Fees
  • Taxes
  • Final Premium

The rating worksheet displays both calculated and judgment based pricing for complete transparency.

Approval Workflows

Judgment Rates frequently require management approval.

Configure:

  • Underwriter Approval
  • Senior Underwriter Review
  • Manager Approval
  • Executive Approval
  • Compliance Review

Approval workflows are fully configurable.

Rating Worksheet Integration

Judgment Rates appear directly within the rating worksheet.

Display:

  • Standard Premium
  • Judgment Premium
  • Difference
  • Reason Codes
  • Approval Status
  • Comments

Every pricing decision remains transparent.

Audit History

Every Judgment Rate is permanently recorded.

Track:

  • User
  • Premium Changes
  • Approval History
  • Documentation
  • Comments
  • Effective Date
  • Final Premium

Organizations maintain complete regulatory documentation.

Automated Testing

Every Judgment Rate workflow should be validated before deployment.

Test:

  • Approval Rules
  • Premium Validation
  • Product Configuration
  • API Responses
  • Workflow Logic
  • Documentation Requirements

Automated testing significantly reduces operational risk.

API Integration

Judgment Rate workflows integrate through secure REST APIs.

Applications can:

  • Submit Judgment Requests
  • Retrieve Approval Status
  • Upload Documentation
  • Complete Reviews
  • Finalize Premiums

Judgment Rates become part of digital underwriting operations.

Judgment Rate Rules

Organizations define when Judgment Rates are permitted.

Configure:

  • Product Rules
  • State Rules
  • Carrier Rules
  • Program Rules
  • Premium Thresholds
  • Underwriting Authority
  • Approval Requirements

Business users maintain governance without modifying application code.

Underwriting Documentation

Every Judgment Rate should include supporting documentation.

Capture:

Documentation simplifies internal reviews and regulatory examinations.

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Effective Date Management

Judgment Rate rules evolve over time.

Manage:

Future underwriting strategies can be configured before implementation. Learn more about Effective Date Management

Release Management

Deploy Judgment Rate workflow updates through governed release processes.

Supports:

Every workflow follows a structured deployment lifecycle. Learn more about Rating Release Management

Enterprise Governance

Every Judgment Rate is fully governed.

Track:

Organizations maintain complete visibility into every underwriting pricing decision.

Benefits of Judgment Rate Management

Insurance organizations automate Judgment Rate workflows to improve underwriting consistency and governance.

Benefits include:

Related Resources

Modernize Judgment Rate Management

Give experienced underwriters the flexibility to price unique commercial insurance risks while maintaining complete governance, transparency, and regulatory compliance with SelectRate.

Frequently Asked Questions

A Judgment Rate is a premium established by an underwriter using professional judgment when standard bureau or carrier rating methodologies do not accurately represent the risk.

Yes. Organizations can configure multiple approval levels based on premium thresholds, products, carriers, programs, or underwriting authority.

Yes. Every Judgment Rate includes underwriter comments, supporting documentation, approval history, and complete audit records.

Yes. Automated testing validates workflow logic, approval rules, premium calculations, APIs, and documentation before deployment.

Yes. Standard premiums, Judgment Rates, approval status, and supporting documentation are available directly from the rating worksheet.