Maturing Rating (or Step Rating)

A claims‑made policy starts with very limited exposure because it is only covering work done after the retroactive coverage date, which is often the policy inception date of your first policy. Each renewal adds another year of prior acts the insurer must cover. As that exposure grows, the premium increases through predictable “steps.” While the number of steps may vary between insurers, typically the step-rating (aka maturing rating) process lasts between 5 to 7 years. At that point, the rating is considered “mature,” meaning:

• The insurer is covering a full block of prior‑acts exposure.

• The premium has reached its long‑term level.

• Future changes in premium will be driven by things like claims experience, practice changes, attorney count, and/or carrier rate adjustments, not by step‑rating.