What is the rating method where the underwriter uses intuition and experience instead of a manual?

The rating method where the underwriter relies on their intuition and experience, rather than following a standardized manual or predetermined formula, is known as Judgment Rating. This approach is particularly useful in situations where the insurance risk is unique or complex and cannot be easily evaluated using standard metrics.

Underwriters who use Judgment Rating assess the risk based on individual circumstances and factors that may not be captured in typical data sets. This method allows for a more personalized approach, taking into account the nuances of specific cases, such as the nature of the business, loss history, and the management of risk by the insured party.

Other rating methods, such as Manual Rating, utilize established guidelines and metrics, whereas Experience and Retrospective Ratings rely on past performance and loss experience to determine future premiums. In contrast, Judgment Rating is flexible and subjective, making it particularly suitable for risks that are less predictable and don't fit neatly into established categories.