{"id":253326,"date":"2026-08-11T13:56:32","date_gmt":"2026-08-11T17:56:32","guid":{"rendered":"https:\/\/ibkrcampus.com\/campus\/?post_type=glossary-terms&p=253326"},"modified":"2026-08-11T13:56:34","modified_gmt":"2026-08-11T17:56:34","slug":"rate-on-line","status":"publish","type":"glossary-terms","link":"https:\/\/www.interactivebrokers.com\/campus\/glossary-terms\/rate-on-line\/","title":{"rendered":"Rate on Line"},"content":{"rendered":"\n

<\/p>\n\n\n\n

<\/p>\n\n\n\n

Rate on line is the premium paid for a reinsurance layer divided by the limit of coverage in that layer, expressed as a percentage. A layer with a 20% rate on line costs $20 for every $100 of coverage, which implies a payback period of five years if the layer were to be fully exhausted once every five years. Comparing the rate on line against the modeled expected loss cost of the same layer gives a rough sense of the margin embedded in the price, and that gap is the basis for comparing reinsurance with alternative sources of protection.<\/p>\n","protected":false},"excerpt":{"rendered":"

Rate on line is the premium paid for a reinsurance layer divided by the limit of coverage in that layer, expressed as a percentage. A layer with a 20% rate on line costs $20 for every $100 of coverage, which implies a payback period of five years if the layer were to be fully exhausted once every five years. Comparing the rate on line against the modeled expected loss cost of the same layer gives a rough sense of the margin embedded in the price, and that gap is the basis for comparing reinsurance with alternative sources of protection.<\/p>\n","protected":false},"featured_media":0,"parent":0,"template":"","meta":{"_acf_changed":false,"footnotes":""},"traders-glossary":[13268,13251],"class_list":["post-253326","glossary-terms","type-glossary-terms","status-publish","traders-glossary-trading-terms-r","traders-glossary-trading-alphabet"],"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"\nArchives Term | IBKR Glossary | IBKR Campus<\/title>\n<meta name=\"description\" content=\"Rate on line is the premium paid for a reinsurance layer divided by the limit of coverage in that layer, expressed as a percentage.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.interactivebrokers.com\/campus\/wp-json\/wp\/v2\/glossary-terms\/253326\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Rate on Line | IBKR Campus US\" \/>\n<meta property=\"og:description\" content=\"Rate on line is the premium paid for a reinsurance layer divided by the limit of coverage in that layer, expressed as a percentage.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.interactivebrokers.com\/campus\/glossary-terms\/rate-on-line\/\" \/>\n<meta property=\"og:site_name\" content=\"IBKR Campus US\" \/>\n<meta property=\"article:modified_time\" content=\"2026-08-11T17:56:34+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\n\t \"@context\": \"https:\\\/\\\/schema.org\",\n\t \"@graph\": [\n\t {\n\t \"@type\": \"WebPage\",\n\t \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/glossary-terms\\\/rate-on-line\\\/\",\n\t \"url\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/glossary-terms\\\/rate-on-line\\\/\",\n\t \"name\": \"Rate on Line | IBKR Campus US\",\n\t \"isPartOf\": {\n\t \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#website\"\n\t },\n\t \"datePublished\": \"2026-08-11T17:56:32+00:00\",\n\t \"dateModified\": \"2026-08-11T17:56:34+00:00\",\n\t \"description\": \"Rate on line is the premium paid for a reinsurance layer divided by the limit of coverage in that layer, expressed as a percentage.\",\n\t \"breadcrumb\": {\n\t \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/glossary-terms\\\/rate-on-line\\\/#breadcrumb\"\n\t },\n\t \"inLanguage\": \"en-US\",\n\t \"potentialAction\": [\n\t {\n\t \"@type\": \"ReadAction\",\n\t \"target\": [\n\t \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/glossary-terms\\\/rate-on-line\\\/\"\n\t ]\n\t }\n\t ]\n\t },\n\t {\n\t \"@type\": \"BreadcrumbList\",\n\t \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/glossary-terms\\\/rate-on-line\\\/#breadcrumb\",\n\t \"itemListElement\": [\n\t {\n\t \"@type\": \"ListItem\",\n\t \"position\": 1,\n\t \"name\": \"Glossary\",\n\t \"item\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/glossary-terms\\\/\"\n\t },\n\t {\n\t \"@type\": \"ListItem\",\n\t \"position\": 2,\n\t \"name\": \"Rate on Line\"\n\t }\n\t ]\n\t },\n\t {\n\t \"@type\": \"WebSite\",\n\t \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#website\",\n\t \"url\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/\",\n\t \"name\": \"IBKR Campus US\",\n\t \"description\": \"Financial Education from Interactive Brokers\",\n\t \"publisher\": {\n\t \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#organization\"\n\t },\n\t \"potentialAction\": [\n\t {\n\t \"@type\": \"SearchAction\",\n\t \"target\": {\n\t \"@type\": \"EntryPoint\",\n\t \"urlTemplate\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/?s={search_term_string}\"\n\t },\n\t \"query-input\": {\n\t \"@type\": \"PropertyValueSpecification\",\n\t \"valueRequired\": true,\n\t \"valueName\": \"search_term_string\"\n\t }\n\t }\n\t ],\n\t \"inLanguage\": \"en-US\"\n\t },\n\t {\n\t \"@type\": \"Organization\",\n\t \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#organization\",\n\t \"name\": \"Interactive Brokers\",\n\t \"alternateName\": \"IBKR\",\n\t \"url\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/\",\n\t \"logo\": {\n\t \"@type\": \"ImageObject\",\n\t \"inLanguage\": \"en-US\",\n\t \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#\\\/schema\\\/logo\\\/image\\\/\",\n\t \"url\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2024\\\/05\\\/ibkr-campus-logo.jpg\",\n\t \"contentUrl\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2024\\\/05\\\/ibkr-campus-logo.jpg\",\n\t \"width\": 669,\n\t \"height\": 669,\n\t \"caption\": \"Interactive Brokers\"\n\t },\n\t \"image\": {\n\t \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#\\\/schema\\\/logo\\\/image\\\/\"\n\t },\n\t \"publishingPrinciples\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/about-ibkr-campus\\\/\",\n\t \"ethicsPolicy\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/cyber-security-notice\\\/\"\n\t }\n\t ]\n\t}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Archives Term | IBKR Glossary | IBKR Campus","description":"Rate on line is the premium paid for a reinsurance layer divided by the limit of coverage in that layer, expressed as a percentage.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.interactivebrokers.com\/campus\/wp-json\/wp\/v2\/glossary-terms\/253326\/","og_locale":"en_US","og_type":"article","og_title":"Rate on Line | IBKR Campus US","og_description":"Rate on line is the premium paid for a reinsurance layer divided by the limit of coverage in that layer, expressed as a percentage.","og_url":"https:\/\/www.interactivebrokers.com\/campus\/glossary-terms\/rate-on-line\/","og_site_name":"IBKR Campus US","article_modified_time":"2026-08-11T17:56:34+00:00","twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/ibkrcampus.com\/campus\/glossary-terms\/rate-on-line\/","url":"https:\/\/ibkrcampus.com\/campus\/glossary-terms\/rate-on-line\/","name":"Rate on Line | IBKR Campus US","isPartOf":{"@id":"https:\/\/ibkrcampus.com\/campus\/#website"},"datePublished":"2026-08-11T17:56:32+00:00","dateModified":"2026-08-11T17:56:34+00:00","description":"Rate on line is the premium paid for a reinsurance layer divided by the limit of coverage in that layer, expressed as a percentage.","breadcrumb":{"@id":"https:\/\/ibkrcampus.com\/campus\/glossary-terms\/rate-on-line\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ibkrcampus.com\/campus\/glossary-terms\/rate-on-line\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ibkrcampus.com\/campus\/glossary-terms\/rate-on-line\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Glossary","item":"https:\/\/ibkrcampus.com\/campus\/glossary-terms\/"},{"@type":"ListItem","position":2,"name":"Rate on Line"}]},{"@type":"WebSite","@id":"https:\/\/ibkrcampus.com\/campus\/#website","url":"https:\/\/ibkrcampus.com\/campus\/","name":"IBKR Campus US","description":"Financial Education from Interactive Brokers","publisher":{"@id":"https:\/\/ibkrcampus.com\/campus\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ibkrcampus.com\/campus\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ibkrcampus.com\/campus\/#organization","name":"Interactive Brokers","alternateName":"IBKR","url":"https:\/\/ibkrcampus.com\/campus\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ibkrcampus.com\/campus\/#\/schema\/logo\/image\/","url":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/ibkr-campus-logo.jpg","contentUrl":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/ibkr-campus-logo.jpg","width":669,"height":669,"caption":"Interactive Brokers"},"image":{"@id":"https:\/\/ibkrcampus.com\/campus\/#\/schema\/logo\/image\/"},"publishingPrinciples":"https:\/\/www.interactivebrokers.com\/campus\/about-ibkr-campus\/","ethicsPolicy":"https:\/\/www.interactivebrokers.com\/campus\/cyber-security-notice\/"}]}},"_links":{"self":[{"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/glossary-terms\/253326","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/glossary-terms"}],"about":[{"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/types\/glossary-terms"}],"version-history":[{"count":1,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/glossary-terms\/253326\/revisions"}],"predecessor-version":[{"id":253327,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/glossary-terms\/253326\/revisions\/253327"}],"wp:attachment":[{"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/media?parent=253326"}],"wp:term":[{"taxonomy":"traders-glossary","embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/traders-glossary?post=253326"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}