PlumBot: Bot: Creating new article from JSON

2026-03-19T13:38:45Z

Bot: Creating new article from JSON

New page

💲 '''Rate card''' is a pre-agreed schedule of prices, fees, or charge rates that an [[Definition:Insurance carrier | insurance organisation]] negotiates with a supplier for a defined category of goods or services. In the insurance industry, rate cards govern a wide range of commercial relationships — from the hourly or daily fees charged by [[Definition:Loss adjuster | loss adjusters]], legal-panel solicitors, and [[Definition:Actuarial consultant | actuarial consultants]], to the per-transaction costs levied by [[Definition:Third-party administrator (TPA) | third-party administrators]] for [[Definition:Claims management | claims handling]], [[Definition:Policy administration system | policy administration]], or [[Definition:First notice of loss (FNOL) | FNOL]] processing. By codifying pricing in advance, rate cards transform what could be an opaque, case-by-case negotiation into a transparent, auditable framework.

⚙️ Rate cards are typically established during the [[Definition:Procurement lifecycle | procurement lifecycle]], often as an annex to a master services agreement or [[Definition:Binding authority agreement | binding authority agreement]]. The insurer and supplier agree on a matrix of charges broken down by service type, complexity tier, geography, or currency — for example, a property [[Definition:Claims | claims]] rate card might specify distinct costs for building surveyor inspections, emergency mitigation call-outs, and contents-replacement coordination, with separate columns for different regions. Once embedded in the contract, the rate card becomes the reference point for every [[Definition:Purchase order (PO) | purchase order]] and invoice, enabling the insurer's [[Definition:Procure-to-pay (P2P) | procure-to-pay]] systems to automatically validate charges. Periodic reviews — often annual — allow both parties to adjust rates for inflation, volume changes, or shifts in scope, keeping the card commercially current without reopening the entire contract.

📊 For insurers, rate cards are a powerful lever against [[Definition:Claims leakage | claims leakage]] and cost overruns. When every supplier interaction is priced against a known benchmark, deviations become immediately visible — whether a [[Definition:Loss adjuster | loss adjuster]] bills above the agreed tier or a [[Definition:Third-party administrator (TPA) | TPA]] charges for services outside scope. This transparency supports the cost-containment goals that directly influence [[Definition:Loss ratio (L/R) | loss ratios]] and, by extension, [[Definition:Combined ratio | combined ratios]]. In the [[Definition:Lloyd's | Lloyd's]] market, managing agents overseeing [[Definition:Coverholder | coverholder]] relationships frequently stipulate rate cards within [[Definition:Delegated claims authority | delegated claims authority]] agreements to maintain control over claims-spend across geographically dispersed partners. Beyond cost management, rate cards also simplify budgeting and [[Definition:Reserving | reserving]]: when the unit cost of claims services is predictable, actuaries and finance teams can model expense ratios with greater confidence. In sum, a well-maintained rate card is not merely a pricing document — it is a governance tool that aligns supplier economics with the insurer's financial discipline.

'''Related concepts'''
{{Div col|colwidth=20em}}
* [[Definition:Preferred supplier]]
* [[Definition:Procure-to-pay (P2P)]]
* [[Definition:Claims leakage]]
* [[Definition:Service-level agreement (SLA)]]
* [[Definition:Procurement policy]]
* [[Definition:Expense ratio]]
{{Div col end}}

Definition:Rate card - Revision history

PlumBot: Bot: Creating new article from JSON