An update to how insurance premiums are calculated

A wide variety of factors affect how insurance premiums are calculated. A large proportion relate to customers' specific risk profiles, whereas others will be out of their control and determined by a range of other influences. Many of these are not widely understood by customers, which can lead to surprise and frustration if insurance premiums go up.

To help your discussion with customers, this article looks at a number of key factors that affect how insurers determine premiums.

Topics covered:
• Politics and economics.
• Cost of doing business.
• Insurer business models.
• Factors affecting premiums in specific business lines.
• How can customers manage premium changes?