Member Economics
Allocation of Premium
In this sectionAllocation of Premium
The design puts every premium dollar to work for members over time. Total Premium means the full amount charged on the policy before any sharing with backup insurance via reinsurance or commissions.
| % of Total Premium | Use of Funds | Purpose |
|---|---|---|
| 8% | Retail Broker commission | Compensate broker as part of traditional insurance model for arranging coverage |
| 5% | Bearing Risk fee | Platform & program sponsorship |
| 5–8% | Policy Issuer | Official licensed policy (e.g. Zurich, Chubb, AIG, etc.) |
| 20% | Independent Account | Member’s own account for claims and future distributions |
| 20% | Share to backup insurance via reinsurance | Protects Ballast Mutual participants from catastrophic claims |
| ~3% | Program Manager / claims handler | Underwriting, claims handling, administration |
| 37% | Group Account + claims + surplus | Common reserve that pays larger claims and supports distributions |
Scroll the table sideways to see all columns.