Should the 3% fee on premiums from earlier models be adjusted or remain the same?

I am posting each question for the community posed in the recent blog post:

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Remain the same IMO.

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How high are the fees of similar/comparable products on premiums?


Hope I get your question correct : try to answer:
Traditional insurers use the terms „combined ratio“ and „loss ratio“.
Please read:


Do the correct answer is: it depends.

There is no fix / fixed profit rate or „fee“ at the beginning of any insurance contract. The only things you have is an actuarial study and based upon that an estimation of what you may earn / lose after the contract(s) will be finished.

There are political reasons why some insurer accept a loss loss ration of more than eg 95% (107-125 eg ore more). Could be they want to dive into new markets / lines of business (LoB, like motor or marine). Or they suffer from event driven (cumul losses) claims situation in a country eg.).


The range of loss ratios we see is / can be between 50-130 or even more - per LoB / and over all LoB‘s / or insurer / or whole insurance markets.

Have a look at statistic European data as an expl. please:

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