Each insured person has a unique risk profile that helps determine how much premium he or she pays. This profile is compiled based on several factors, such as age, occupation, driving experience or place of residence. For example, someone who lives in a busy city may be at higher risk of claims than someone who lives in a quiet rural area.
Insurers use the risk profile to determine a balanced premium. This does not mean that you are directly assessed as an individual, but rather that general trends and statistics are taken into account. In some cases, your risk profile can improve by taking additional preventive measures, such as an alarm system at your home or defensive driving behaviour with car insurance.
Disclaimer
This page is part of a lexicon and does not provide product information or contractual details on insurance services. For specific information, please refer to the official documentation or contact your insurance agent.
