Property Benchmarking and Funding
Property benchmark contributions are calculated by actuaries using industry benchmarks, claims experience and assessment of risk exposures.
Agencies pay a contribution based on the overall loss experience of the icare tmf’s property portfolio and the value of their own assets. There is no hindsight adjustment for this cover.
The benchmark funding process is designed to provide agencies with a financial incentive to improve their claims outcome. Agencies whose claims outcome for the previous fund year is better than expected are rewarded with a funding surplus.
Agencies whose claims outcome for the previous fund year is worse than expected (i.e. claims costs is greater than prediction) will be invoiced to pay the funding deficit.