American Property Casualty Insurance Association
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Risk-Based Pricing

The risk-based pricing insurance system is the fairest way to match rate to risk, and consumers benefit by the continued availability of risk-based pricing in open competitive markets.

No one wants to pay more for insurance than they should, and insurance costs should match risk. That is why insurers are committed to using a wide variety of objective data that keeps insurance as affordable, competitive, and available to consumers as possible.

Home, auto, and business insurers have a long history of using objective criteria and proven science to ensure fairness and competitive pricing for our consumers. We are now redoubling our efforts to explore additional ways that we can advance social equity and financial empowerment for individuals, businesses, and communities.

How do consumers benefit from risk-based pricing?

  • Fair, Lower & Accurate Rates
  • More Choices in the Market
  • Less Risky Do Not Subsidize the Riskier

APCIA will continue to protect the risk-based pricing insurance system to maintain a highly competitive and innovative private marketplace, with rates based on objective risk factors. Click here to learn more about the risk-based pricing system.