A standard market insurer offers rates to insureds with what type of loss experience?

A standard market insurer typically offers rates to insureds who demonstrate average or better loss experience. This means that these insurers seek out individuals or entities that have a history of relatively low claims or losses, indicating that they are less likely to present a risk of significant future claims. By focusing on those with average or better loss experience, standard market insurers can maintain profitability, manage risk effectively, and ensure they are covering individuals who are more likely to behave in a way that leads to fewer claims.

Insureds with below average loss experience may still be considered, but they would typically face higher rates or may be moved to a non-standard market, where terms are less favorable. High-risk individuals often require specialty coverage or higher premiums, as their history indicates a greater probability of filing claims. Likewise, those deemed uninsurable are generally unable to obtain coverage under standard market policies because their risk is too great. Thus, average or better loss experience aligns well with the underwriting criteria of standard market insurers.