Insurance companies that offer green insurance coverage through Green Business Insurance should consider implementing a dividend plan - returning a portion of paid premium to the policyholder if the green policyholders, over-all, have low loss ratio.

Green Business Insurance Dividend Plan

• In order for Green Business Insurance to pay dividend to green policyholders, total combined green premiums must be over $2 million
• In order for Green Business Insurance to pay dividend to green policyholders, combined loss ratio for green policyholders cannot exceed 85% for all lines of green insurance business
• In order for policyholder to receive green dividend check their individual loss ratio cannot exceed 85% during the policy year
• Green Business Insurance policyholders will receive a dividend check of up to 5% of prior year paid premium if the total group loss ratio is below 85% and their individual loss ratio is below 85%

The figures above are not exact but the concept should be considered.