Mid-term repricing
Also known as: In-term repricing · Mid-term adjustment
Adjusting a contract's price during its term, when observed risk changes, instead of waiting for renewal.
At Zarv
18% lower loss ratio in the first year with in-cycle repricing.
Conventional pricing happens once, at underwriting, and holds until renewal — in US personal auto, typically a six- or twelve-month term. Risk does not respect that calendar: a driver changes routes, a fleet changes operation, a borrower changes jobs. Between one pricing and the next you are charging for a risk that no longer exists, or failing to charge for one that appeared.
Mid-term repricing means acting when the signal changes, not when the contract expires. That requires two things most operations lack: continuous monitoring that notices the change, and a trigger that turns it into a commercial action the contract and the applicable rating rules allow.
In Zarv implementations, contracts repriced in-cycle on observed behavior showed an 18% lower loss ratio in the first year.