We provide complete service for pricing of current or new products for both life and non-life insurance.
Our approach can be split into
- risk valuation part and
- retention management services.
We can provide support
- using your internal tools and providing you with appropriate advice services or
- selling our tools we have developed.
This includes complex Non-Life pricing tools (click here), Life pricing tool (click here), or other specialized tools which may be used for some specific part of pricing process (click here).
Risk valuation
- Building basic mathematical model using GLM.
- Evaluation of key risk drivers of insurance portfolio.
- GLM model development.
- Construction of zero profitability tariff.
- Building regional segmentation based GPS smoothing.
- Using GPS locations for smoothing of the claim data in portfolio.
- Use of cluster analysis for grouping similar risks together.
- Embedding the regional segmentation into standard GLM model.
- Extension of portfolio data with external data set
- Extension of portfolio data with external data – possible sources:
- Census data – statistical office
- Public databases for entrepreneurs (turnover, payment morale, etc.)
- Evaluation of key risk drivers of insurance portfolio (cluster analysis).
- Embedding external data variables into standard GLM model
Retention management services
- Modeling of policyholders lapse rate:
- Evaluation of key drivers influencing policyholder’s lapse rate
- GLM model development.
- Development of prices optimization tool for management of renewal offers:
- Combining the policyholders’ probability of lapse with risk valuation (profitability) in one optimization tool which maximizes profit with given limits of lapse rate.
- P&L impact evaluation.
Please contact us for further information!