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📁 '''Class of business''' is a classification category that groups [[Definition:Insurance | insurance]] [[Definition:Policy | policies]] or [[Definition:Risk | risks]] sharing similar characteristics — such as the type of peril covered, the nature of the [[Definition:Insured | insured]] entity, or the industry segment served — into a distinct portfolio segment. Common classes include [[Definition:Property insurance | property]], [[Definition:General liability insurance | general liability]], [[Definition:Professional liability insurance | professional liability]], [[Definition:Workers' compensation insurance | workers' compensation]], [[Definition:Marine insurance | marine]], and [[Definition:Cyber insurance | cyber]]. [[Definition:Insurance carrier | Carriers]], [[Definition:Reinsurer | reinsurers]], and [[Definition:Managing general agent (MGA) | MGAs]] use these categories to organize [[Definition:Underwriting | underwriting]] strategy, monitor performance, and communicate with the market in a shared language.

📐 Each class carries its own [[Definition:Loss | loss]] profile, regulatory requirements, and [[Definition:Rating | rating]] methodology. An [[Definition:Underwriter | underwriter]] specializing in commercial property, for instance, draws on different data, models, and coverage forms than one focused on [[Definition:Directors and officers insurance (D&O) | directors and officers]] liability. Internally, insurers track [[Definition:Loss ratio | loss ratios]], [[Definition:Combined ratio | combined ratios]], and [[Definition:Premium | premium]] volume by class to identify which segments are profitable and which require corrective action — whether that means tightening [[Definition:Underwriting guidelines | underwriting guidelines]], adjusting [[Definition:Pricing model | pricing]], or exiting the class altogether.

🧭 Clear class-of-business segmentation is foundational to sound portfolio management. It allows [[Definition:Actuary | actuaries]] to build credible [[Definition:Reserving | reserving]] and pricing models, enables [[Definition:Reinsurance | reinsurance]] programs to be structured around the exposures that matter most, and gives senior leadership a reliable dashboard for capital allocation decisions. When an insurer or [[Definition:Lloyd's syndicate | Lloyd's syndicate]] reports results to the market, class-level performance data is often the first thing analysts and [[Definition:Rating agency | rating agencies]] scrutinize.

'''Related concepts'''
{{Div col|colwidth=20em}}
* [[Definition:Line of business]]
* [[Definition:Underwriting guidelines]]
* [[Definition:Book of business]]
* [[Definition:Loss ratio]]
* [[Definition:Risk classification]]
* [[Definition:Combined ratio]]
{{Div col end}}

Definition:Class of business - Revision history

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