Insurance Risk Reports module offers both: identification of threats and opportunities, as well as further control of changes. Module background is ad-hoc reporting concept (enables non IT users to create reports on their own, within predefined list of indicators and slices). That’s why Insurance Risk Reports module will provide fast answer about profitability of policies within any interested segment (or policies related to any particular person) and will support by monitoring claim development.
In order to keep aligned and controlled combination of two targets: profitability and sales volume as well as sufficiency of claim reserves Insurance Risk Reports module is concentrated to assist on:
- Profitability analysis (identification of threats and opportunities & control of changes)
- Sales volume analysis (control of changes)
- Claim development versus reserves estimated analysis
Profitability analysis. Reports module could be used to assess both actual as well as expected (for very new policies) profitability in total and for each separate segment. Such indicators like profitability, combined ratio, claim ratio, risk based price minus premium written may be analysed by financial & underwriting period, product risks (e.g. material damage versus person injury for MTPL), structured claim event place, risk parameters (e.g. region, customer and object insured characteristics), other useful slices (e.g. sales channel, salesman, broker, unit, new / renew policy indicator, duration of policy, claim handler).
Sales volume analysis. Insurance Risk Reports module ensures daily / weekly sales analysis to monitor the effect of changes done in tariff system. The following core management functions are supported: distribution channel control, renewal control (dynamics of renewal ratio is a core attribute to measure impact of changes done in tariff system as well as to catch changes done by competitors), new customers acquisition control. Measures – written premium, number of policies, average premium, renewal & retention ratios available per slices like financial & underwriting periods, risk parameters (e.g. region, customer and object insured characteristics), sales channel, salesman, broker, unit, duration of policy, payment method, payment frequency and others.
Claim development. Reports could be used to calculate run-off result and monitor the changes in the claims settlement pattern. Run-off result could be calculated in separate segments according to different policyholders, sales channel characteristics as well as different claim type or claim occurrence place. The changes in the claim development pattern could be assessed in the early phase using various claim statistics like average settlement period, average claim costs per slices like accident & reporting periods, reporting channel, risk parameters (e.g. region, customer and object insured characteristics) and others.
