Credibility factor
How much weight your own claims carry in pricing.
Credibility is the statistical weighting an insurer applies to your group's own claims experience versus pooled data. A fully credible group is priced almost entirely on its own history; a low-credibility group is priced mostly on the pool.
It is a function of group size and claim volume, not of how well you have managed the plan.
What this means for a BC plan
Ask for the credibility factor explicitly on any renewal. If a small BC group is being handed a large increase attributed to its own experience, the weighting applied is a fair question.
Related terms
Where this comes up
Why renewals increase · All glossary terms · Ask an advisor directly
General information only, not advice for your specific plan. See our legal and licensing disclosures.