Category: Pricing & rating · Reviewed by Chrissie Anderson, Client Executive · Last reviewed
Schedule rating is the underwriter’s adjustment to a manual or experience-rated premium for individual risk characteristics not captured by the rating algorithm. It is the “judgemental” layer of commercial pricing.
| Factor | Credit/debit range |
|---|---|
| Quality of management | ±10% |
| Building construction superior to grade | ±5% |
| Sprinkler-protected throughout | ±10% |
| Loss prevention programme | ±5% |
| Premises condition | ±5% |
| Security (intruder alarm, CCTV, guarding) | ±5% |
| Employee training programme | ±5% |
| Business continuity plan | ±3% |
Total scheduling adjustments are usually capped at ±25% to ±40% depending on insurer policy.
Schedule rating is an obvious source of inconsistency and potential conduct risk (e.g. discrimination, loyalty penalty). PRA and FCA expect insurers to monitor schedule rating outcomes and evidence consistent application. Detailed peer review of large schedule rating credits is now common.
In the UK, personal lines schedule rating in the discretionary sense has largely disappeared, replaced by GLM-based pricing factors. The FCA’s pricing rules (PS21/5) preclude discretionary discount strategies that would have been classic schedule rating in earlier years.
Maintained by Matt Bartlett, Director, Apex Insurance Brokers Limited. FCA FRN 724952. Companies House 07014570.
Apex Insurance Brokers serves UK professional services firms and commercial businesses. Call 0117 325 0027, email hello@apexinsurancebrokers.co.uk, or request a quotation.
Get a quote