Pricing services

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!