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.
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.
SelectRate supports loss cost multiplier management across every major commercial insurance bureau.
Including:
Organizations can maintain independent multiplier strategies while sharing common bureau content.
Many carriers use different multipliers across different states.
Configure:
Organizations maintain flexible pricing while reducing administrative effort.
Certain classifications require unique pricing strategies.
Apply multipliers by:
This enables highly targeted pricing without modifying bureau loss costs.
Every commercial insurance product may maintain its own pricing strategy.
Configure multipliers for:
Each product maintains independent pricing while leveraging the same bureau content.
Manage every carrier multiplier from one administrative interface.
Configure:
Every multiplier is centrally managed and fully auditable.
Loss Cost Multipliers support a wide variety of carrier pricing models.
Configure:
Pricing strategies can evolve without modifying the rating engine.
Every multiplier change is version controlled.
Track:
Historical pricing remains available for renewals, audits, and policy servicing.
Every multiplier update should be validated before deployment.
Test:
Automated testing ensures pricing behaves as expected before production deployment.
Deploy multiplier updates through governed release workflows.
Supports:
Every pricing change follows a controlled deployment process.
Loss Cost Multipliers are automatically applied during premium calculation.
The rating engine evaluates:
Every calculation references the correct multiplier version. Learn more about Premium Calculation Engine.
Pricing changes frequently become effective on future dates.
Manage:
Future pricing changes can be configured months before implementation. Learn more about Effective Date Management.
Applications automatically retrieve the correct multiplier during every rating request.
Supports:
Every API request evaluates the appropriate multiplier based on carrier, product, state, and effective date. Learn more about Insurance Rating API.
Every pricing modification is fully documented.
Track:
Organizations maintain complete visibility into every pricing decision.
Insurance organizations centralize multiplier management to improve pricing agility and operational efficiency.
Benefits include:
Configure carrier specific loss cost multipliers from one centralized platform while maintaining complete version control, automated testing, and enterprise governance.