Net rate and gross rate are some of the main terms in the insurance business. The gross rate is the insurance rate, which is the premium rate per unit of the insured amount or the object of insurance. In turn, the tariff is made up of the net rate and the load to it. To calculate the load to the net rate, it is necessary to take into account the costs of running the insurance business, the company's planned profit and deductions for preventive measures.
Instructions
Step 1
Calculate the actual costs of maintaining the insurance company. These include salaries for staff and freelance workers, rent for premises, utility bills, telephone, Internet and other costs associated with the activities of the company. To calculate actual expenses, use the accounting data for the selected period of time.
Step 2
Determine the total amount of insurance payments actually received by the company for the same period.
Step 3
Calculate the proportion of the firm's actual costs in the amount of insurance payments. To do this, divide the actual cost by the insurance premium. Multiply this number by 100%.
Step 4
Determine the percentage of contributions to the prevention fund. The funds of this fund are used for activities aimed at reducing the likelihood of an insured event. The firm has the right to independently establish the procedure for its formation and use.
Step 5
Set the maximum possible percentage of the planned profit of the insurance company, which must be included in the insurance rate. The planned profit is intended to ensure the development of the organization. This value can be used to regulate the size of the insurance rate - if it is very large, the company can easily lose its customers.
Step 6
Calculate the load to the net rate by increasing the percentage of the firm's actual costs by the percentage of deductions to the preventive measures fund and by the percentage of planned profit. Depending on the form and type of insurance, the load to the net rate can range from 9 to 40%.
