Insurance Risk


Anti-selection of bad risks is a prevention mechanism, which enables insurance company to sign more profitable policies comparing with competitors. Anti-selection is ensured through detailed and weighted tariff system. The best effect typically is gained for non-commercial product lines.

Picture below illustrates financial impact of anti-selection effect (doing nothing Company A will collect losses).

Competitive insurance environment forces to:

  • Have know-how and efficient tools in order to identify significant changes in competitors tariff systems.
  • Collect as many potential risk attributes as possible.
  • Build knowledge and flexible tools to analyse impact of risk attributes.
  • Ensure fast process of tariff structure implementation and changes of coefficients.