Which rating method is the oldest form of rating used by underwriters?

Judgment Rating is recognized as the oldest form of rating used by underwriters because it relies on the individual judgment of the underwriter to assess risk and determine premiums. This method does not depend on statistical data or a set formula. Instead, it draws on the underwriter's experience and expertise to evaluate specific risks associated with an individual policyholder or situation. The underwriter considers various factors related to the risks being insured and makes a subjective decision about the premium to charge.

In contrast, Manual/Class Rating involves relying on established categories or classes of risks with predetermined rates, allowing for a more standardized approach based on historical data. Experience Rating, on the other hand, adjusts premiums based on the insured’s past loss experience, making it more data-driven than Judgment Rating. Lastly, Merit Rating incentivizes safety and loss control by offering discounts or surcharges based on an insured's performance over time. While all these methods have their significance in insurance underwriting, Judgment Rating stands out as the original approach employed before more systematic techniques evolved.