Posted: April 3rd, 2023 10:10am +00:00

Using Premium Apportionment for reducing costs

premium apportionment


To ensure we are all on the same page, let’s start with a definition of apportionment. From Google, apportionment means to divide up and share out. A further search provides us with greater insight when looking at this from an insurance premium apportionment perspective.

“Where insurance is concerned, an apportionment is the allocation of a loss between all of the insurance companies that insure a piece of property”.

Refining this still further within the context of an Insurance Claims Team at a local authority, premium apportionment means being able to share out premiums across the various stakeholders within the business. This can be based upon a number of criteria but an extremely good one, if you have access to the relevant data, is through the value and/or quantities of claims.

JCAD’s claims software LACHS, routinely stores this type of data so with the addition of the Premium Recharge facility the process of apportioning premiums is simple. By using this feature, you can ensure that those with the greatest responsibility contribute more. This is not only fairer, but it can also have a positive effect on costs. Those paying a higher proportion of a policy premium will be more inclined to put in place measures to reduce their costs, such as improved risk management or more timely reporting.

If you are interested in learning more about this feature, please get in touch.

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