Insurance Risk

Price module

Critical factors in order to have efficient and flexible pricing system:

  • Risk based pricing implemented using worldwide known models. Ensured fast recalculation of risk based pricing system.
  • Implemented efficient tool to analyse potential price attributes – prevents anti-selection.
  • Price elasticity and market capacity analysis is available.
  • Company has a fast way to identify significant changes in pricing of other companies in market.

Insurance Risk Price module offers following automated functions:

  • Preparation of data sets for GLM (Generalized Linear Models) analysis (claim frequency and severity estimation).
  • Integrated execution of GLM models (using statistical software packages), which identify the impacts on claim frequency and severity.
  • Further analysis of pricing coefficients after upload into Insurance Risk system.
  • Integration of administrative costs into calculation of risk based price tariff coefficients.
  • Allocation of risk-based prices to each policy and comparison of risk price and written premiums for each flexible chosen segment. This comparison ensures measured view in underpriced and overpriced segments (even for policies written, for example, yesterday or last week).
  • Ability to analyse additional (potential) tariff attributes in order to avoid anti-selection and ensure competence advantages.
  • Anti-fraud analysis.