Most commercial insurance carriers do not use bureau loss costs without modification. Instead, they apply carrier specific loss cost multipliers to reflect underwriting philosophy, target profitability, geographic strategy, market conditions, and product performance. SelectRate enables insurance organizations to configure, manage, test, version, and deploy loss cost multipliers across every carrier, program, state, and commercial insurance product from one centralized platform. Whether you're managing one multiplier or thousands across multiple products, SelectRate provides enterprise governance without increasing operational complexity.
What Are Loss Cost Multipliers?
Loss Cost Multipliers are carrier defined factors applied to bureau published loss costs to calculate insurance premiums. Rather than using bureau loss costs directly, insurance organizations adjust pricing using configurable multipliers that reflect their own underwriting and pricing strategy.
A simplified calculation may look like:
Loss Cost × Carrier Loss Cost Multiplier = Base Premium
Additional rating variables, underwriting adjustments, fees, taxes, and modifiers are then applied to produce the final premium.
Built for Commercial Insurance
SelectRate supports loss cost multiplier management across every major commercial insurance bureau.
Including:
- ISO
- NCCI
- WCIRB
- PCRB
- DCRB
- NJCRIB
- WCRIBMA
Organizations can maintain independent multiplier strategies while sharing common bureau content.
State Specific Multipliers
Many carriers use different multipliers across different states.
Configure:
- State Multipliers
- Territory Multipliers
- Regional Pricing
- Program Multipliers
- Product Specific Pricing
Organizations maintain flexible pricing while reducing administrative effort.
Classification Specific Multipliers
Certain classifications require unique pricing strategies.
Apply multipliers by:
- Classification Code
- Industry Group
- Risk Category
- Exposure Type
- Coverage
- Program
This enables highly targeted pricing without modifying bureau loss costs.
Product Specific Multipliers
Every commercial insurance product may maintain its own pricing strategy.
Configure multipliers for:
- General Liability
- Workers Compensation
- Commercial Property
- Commercial Auto
- Inland Marine
- Builders Risk
- Professional Liability
- Cyber Liability
Each product maintains independent pricing while leveraging the same bureau content.
Centralized Multiplier Management
Manage every carrier multiplier from one administrative interface.
Configure:
- Carrier
- Program
- Product
- State
- Classification
- Coverage
- Effective Date
- Multiplier Value
Every multiplier is centrally managed and fully auditable.
Carrier Pricing Strategy
Loss Cost Multipliers support a wide variety of carrier pricing models.
Configure:
- Base Multipliers
- Program Multipliers
- Product Multipliers
- State Multipliers
- Class Multipliers
- Renewal Multipliers
- Preferred Risk Pricing
- High Hazard Pricing
Pricing strategies can evolve without modifying the rating engine.
Version Control
Every multiplier change is version controlled.
Track:
- Previous Values
- New Values
- Effective Dates
- Approval Status
- User Activity
- Deployment History
- Audit History
Historical pricing remains available for renewals, audits, and policy servicing.
Automated Testing
Every multiplier update should be validated before deployment.
Test:
- Premium Differences
- Product Configuration
- Bureau Updates
- Formula Changes
- API Responses
- Underwriting Rules
Automated testing ensures pricing behaves as expected before production deployment.
Release Management
Deploy multiplier updates through governed release workflows.
Supports:
- Draft Releases
- Product Approval
- Automated Testing
- Scheduled Deployment
- Rollback
- Audit History
Every pricing change follows a controlled deployment process.
Premium Calculation Integration
Loss Cost Multipliers are automatically applied during premium calculation.
The rating engine evaluates:
- Bureau Loss Costs
- Carrier Multipliers
- Experience Modifiers
- Rating Variables
- Schedule Rating
- Underwriting Rules
- Discounts
- Taxes
- Fees
Every calculation references the correct multiplier version. Learn more about Premium Calculation Engine.
Effective Date Management
Pricing changes frequently become effective on future dates.
Manage:
- Historical Multipliers
- Current Multipliers
- Future Multipliers
- Renewal Pricing
- Bureau Effective Dates
- Carrier Effective Dates
Future pricing changes can be configured months before implementation. Learn more about Effective Date Management.
API Integration
Applications automatically retrieve the correct multiplier during every rating request.
Supports:
- Agency Management Systems
- Policy Administration Systems
- Broker Portals
- Customer Portals
- Mobile Applications
- Third Party Platforms
Every API request evaluates the appropriate multiplier based on carrier, product, state, and effective date. Learn more about Insurance Rating API.
Enterprise Governance
Every pricing modification is fully documented.
Track:
- Multiplier Changes
- Product Versions
- Formula Changes
- User Activity
- Approval History
- Deployment History
- Audit History
Organizations maintain complete visibility into every pricing decision.
Benefits of Loss Cost Multiplier Management
Insurance organizations centralize multiplier management to improve pricing agility and operational efficiency.
Benefits include:
- Faster Pricing Updates
- Better Pricing Accuracy
- Simplified Bureau Updates
- Enterprise Governance
- Automated Testing
- Faster Product Releases
- Historical Pricing Support
- Complete Audit History
- Modern API Integration
- Reduced Operational Risk
Frequently Asked Questions
Manage Carrier Pricing Without Modifying Bureau Content
Configure carrier specific loss cost multipliers from one centralized platform while maintaining complete version control, automated testing, and enterprise governance.